Gold's price hit 8-day low in Asia
- Gold eroded key trendline support in Asia as Fed maintained hawkish guidance
- Prices fell to $1,219 - the lowest level since Nov. 1.
- The safe-haven metal is struggling to find takers despite risk aversion in the markets.
Gold's price hit an 8-day low of $1,219 in Asia as the Fed reiterated its tightening stance.
The yellow metal eroded trendline rising from the Oct. 9 low and Oct. 31 low a few minutes before press time.
Notably, the bearish move has happened even though the equities are trading risk averse. For instance, the S&P 500 futures are currently down 0.15 percent. Stocks in Japan, Australia, South Korea, and Hong Kong are also flashing red.
Clearly, the metal is struggling to find haven bids and is looking extremely vulnerable to dollar rally, if any. As of now, the greenback's exchange rate, as represented by the dollar index, is flatlined at 96.70 but may pick up a strong bid during the day ahead as the Chinese yuan is reporting losses.
More importantly, a December Fed rate hike is looking like a done deal. As a result, the greenback could remain better bid in the near-term, keeping the zero-yielding yellow metal under pressure.
Gold Technical Levels
Support: $1,216 (100-day SMA), $1,212 (Oct. 31 low), $1,200 (psychological level)
Resistance: $1,226 (5-day SMA), $1,237 (Nov. 1 high), $1,243 (Oct. 26 high)
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
