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Gold: Fed minutes offer support, holds above 1hr 200-SMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 18, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    Gold futures on Comex extend the recovery mode for the second straight session during the Asian hours, as the latest Fed minutes reinforced bets of no March Fed rate hike.

    Upside capped by risk-on rally in equities


    Currently, gold drops -0.10% to 1210.30, easing-off fresh session highs posted at 1210.90 last hours. The bullion found renewed bids near 1205 region and resumed its recovery mode since Tokyo open, now regaining 1210 barrier. The gold bulls received much needed respite from the cautious Fed minutes, underscoring the recent global financial markets turbulence and hence, pointed towards minimal chances of a Fed rate rise at its March 15-26 FOMC meeting.

    However, the upside remains limited in wake of the risk-on rally seen in the global equities, as risk-appetite returned to markets after the black gold rebounded nearly 7% on Wednesday on output freeze talks.

    In the day ahead, the focus will remain on the broader market sentiment, besides, the US datasets will be also closely eyed ahead of the US inflation report due to be released tomorrow.

    Gold Technical Levels

    The metal has an immediate resistance at 1213.48/1214.57 (5 & 10-DMA) and 1217.71/ 21.78 (1h 100-SMA/ 50-DMA). Meanwhile, the support stands at 1203.77 (1h 200-SMA) below which doors could open for 1200 (psychological levels).
    For more information, read our latest forex news.
     

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