Gold ignores Fed rate hike talk, stays on front foot

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 5, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    Risk-off in Asia and the resulting safe haven demand overshadowed hawkish talk from Fed officials and kept Gold well bid heading into Europe.

    Bounced off 50-DMA support

    Fresh demand came in as the metal bounced-off its 50-DMA level of $1216 in Asia. Asian equities fell on oil and Fed rate hike talk, triggering a flight to safety. Fed’s Rosegren was slightly hawkish via his comments in the NY session, while Evans said two rate hikes are “appropriate” this year.

    However, metal traders did not pay attention to the rate hike talk as markets seem convinced Fed may not be able to move rates in the near-term. Ahead in the day, broader market sentiment and US ISM non-manufacturing figure could influence the metal.

    Gold Technical Levels

    Gold currently trades around $1226 levels. The immediate support is seen at $1215 (50-DMA), under which prices could drop to $1200. A break lower would expose $1191.53 (Oct 15 high). On the higher side, a break above $1240 (Feb 18 high) would shift risk in favor of a rise to $1244.12 (Mar 30 high) and $1253.32 (Feb 24 high).
    For more information, read our latest forex news.

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