Gold: gains capped at 5-DMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 16, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - Gold prices advanced in Asia, but gains were capped at the 5-DMA located at USD 1066/Oz levels.

    Eyes FOMC rate decision

    Today’s rate decision is more important for gold traders as it would throw a light on how the Fed intends to tighten its policy and reduce the size of its bloated balance sheet.

    A point worth noting is that gold prices are directly correlated to the size of the Fed’s balance sheet. So a mere policy tightening may not be enough to rattle the yellow metal, but if the Fed begins reducing the size of its balance sheet, the yellow metal could be worst hit.

    Gold Technical Levels

    At USD 1065.38/Oz, the immediate resistance is seen at 1070.35 (10-DMA), above which the gains could be extended to 1080.48 (23.6% of Oct high-Dec low). On the other hand, a break below 1058.41 (previous day’s low) would expose 1050.50 (Dec 2 low).
    For more information, read our latest forex news.

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