Gold stages solid comeback, flirts with 1h 100-SMA

Gold reverses a dip to $ 1171 levels, having staged a solid recovery amid renewed weakness seen in the US dollar against its major peers.

Gold eyes 10-DMA at $ 1178.81

Currently, Comex gold futures almost unchanged at 1176.45, hovering close to session tops reached at 1177.05 last minutes. Gold prices recovered from ten-month lows and now look to regain bids amid moderate risk-off sentiment persisting in the markets, as the Asian equities pare gains, while oil prices extend the downside alongside copper prices.

Moreover, stalled recovery in the US dollar across the board, also lent support to the renewed buying interest seen behind the yellow metal. A weaker US dollar makes the USD denominated gold less expensive for the holders in foreign currencies.

Meanwhile, markets have largely ignored the Italian no vote and hence, all eyes remain on next week’s FOMC meeting, with a rate hike widely expected. Therefore, any recovery in the bullion is expected to remain short-lived on an imminent Fed rate rise.

Comex Gold Technical Levels                                  

The metal has an immediate resistance at 1178.81 (10-DMA) and 1180 (round figure). Meanwhile, the support stands at 1171 (daily low) below which doors could open for 1166.40 (Dec 2 low).