Gold falls on eased inflation fears.
Gold under the strong bearish pressure today after a stream of the economic and news reports calmed the inflation fears among the global investors and triggered the selling of the gold from the earlier elevated levels. Gold sales are primarily driven by the surprisingly weak U.S. jobs figures released the previous day and by the on-going loose Federal Reserve policy – pointing toward the lower inflation and lowering gold’s appeal as the traditional hedge against higher inflation in USA. Another factor affecting gold now is the latest surge in domestic gold prices in India – which is due to the rise in the international prices and the local exchange rate – which is lowering the demand of the physical gold across India and also affecting Gold prices. Latest reversal from key resistance level 1755.00 also added to macro selling.
Gold sellers on downward corrections.
Next support to watch – 1680.00
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