MTS Help Center

• Gold prices slipped on Friday but hovered near 10-week high after gaining 3% in the previous session, its biggest one-day gain in more than two years.

December Gold Futures slipped 0.3% and traded at $1,224.30 on the COMEX division of the New York Mercantile Exchange by 1:48 AM ET (05:48 GMT).

• Gold prices recorded its largest daily percentage gain on Thursday since June 2016 as global stock markets extended losses. Fears over rising bond yields also drove traders toward safe-haven assets.

However, analysts expect rising interest rates would likely remain a concern for gold prices. Interest rate increases and higher U.S. bond yields dampen appeal for gold, which offers no yield. They also tend to boost the dollar.

• “The sinking of global markets has led people to seek gold as a safe haven. However, in Asian hours today we have seen some profit-taking,” said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.

“With prices breaking the resistant $1,200 level and also crossing $1,225, it could be a signal that gold market is on the upside. Especially, given that during November and December we also see increased physical buying.”

• On Friday, the U.S. dollar index that tracks the greenback against a basket of other currencies was unchanged at 94.69.

The U.S. dollar is now near its lowest level in nearly two weeks as falling U.S. treasury yields and further losses on global equities weighed on market sentiments.

• Gold backs off from 10-week high, 100-day EMA is the level to beat for the bulls

Gold is losing altitude in Asia, having clocked a ten-week high of $1,226 yesterday.

At press time, the safe haven yellow metal is trading at $1,218/z, representing a 0.20 percent drop on the day. The pullback from $1,226 to $1,218 could be associated with the overbought conditions reported by the hourly chart and 4-hour chart relative strength index (RSI).

Focus on the 100-day EMA

The metal jumped above the Aug. 28 high of $1,214, courtesy of risk aversion in the Us stock markets, confirming a bullish breakout, however, the subsequent failure to take out the 100-day EMA has established the key EMA as a level to beat for the bulls.

Gold Technical Levels

Resistance: 1226, 1238 , 1251

Support: 1214, 1200, 1191

Reference: FX Street, Investing.com