Gold prices on Comex extend its recovery from five-year lows and held on to solid gains in the European session as the US dollar retreat across the board helped the yellow metal to correct previous week’s slump. Gold rises to fresh 5-day highs Currently, gold trades over 1% higher at 1104, easing off new five-day highs posted at 1104.90. Gold staged a solid comeback on Monday after the US dollar was heavily sold-off against its major rivals on the back of the recent poor US home sales data. The US dollar index, a virtual gauge of greenback’s strength trades -0.69% lower at 96.67. A stronger greenback makes dollar-priced in gold more expensive to holders on other cu Moreover, waning investors’ confidence in the yellow metal is evidenced by the SPDR Gold Trust which provides a mirror of actual demand for gold on the market. The holdings showed 680.15 tonnes, being at the bottom since September 2008. Gold prices plunged to the levels last seen in 2010 as the strength of the US currency persists on expectations that the time of the first increase in the Federal Reserve's federal funds rates has come closer. In the week ahead, the yellow metal will be highly influenced by major US macro releases pair with the US FOMC statement which may provide fresh cues on the USD moves.
Gold Technical Levels
The metal has an immediate resistance at 1110 and 1115 levels. Meanwhile, support stands at 1094.20 below which doors could open for 1090 levels.