Gold was little changed on Thursday after dipping to its lowest since February in the previous session, with the dollar holding around 9-month highs against the yen after a rally in oil prices.
Spot gold was mostly unchanged at $1,172.24 an ounce by 0046 GMT. The metal hit its lowest since Feb. 8 at $1,170.35 in the previous session.
The U.S. dollar was broadly firm, hitting 9-1/2 month highs against the yen as oil prices surged after OPEC agreed to output cuts - lifting inflation expectations and U.S. bond yields.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.13 percent to 883.86 tonnes on Wednesday from 885.04 tonnes on Tuesday.
A stronger-than-expected U.S. ADP national employment report and an upbeat ISM Chciago business survey helped to push gold prices new daily lows. The November ADP number came in at up 216,000, which was well above market expectations. Today’s U.S. economic reports and fall into the camp of the U.S. monetary policy hawks, who want U.S. interest rates to rise sooner rather than later. The positive U.S. data today helped to push the U.S. dollar index firmly higher today.
Technically, February gold futures prices closed nearer the session low, hit a 10-month low and closed at a bearish monthly low close today. The gold bears have the solid overall near-term technical advantage and gained more power today. Prices are in a five-month-old downtrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at this week’s high of $1,200.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,150.00. First resistance is seen at $1,185.00 and then at $1,190.00. First support is seen at today’s low of $1,171.30 and then at $1,160.00. Wyckoff's Market Rating: 2.0
Reference: Reuters, Kitco
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