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Gold largely unchanged after Fed statement

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - Gold prices quickly recovered from the post-Fed hike low of USD 1061.45 levels as to trade largely unchanged around the pre-Fed level of USD 1073/Oz levels.

    Markets wait for Yellen

    A 25 basis point rate hike was widely expected, hence, markets have not reacted much to the news. A minor USD rally quickly ran into a bout of profit taking, which saw gold move back to pre-Fed level. The 2-year treasury yield, which mimics rate hike bets, fell back below 1%.

    The markets now eye Yellen speech for more insight into the path of the policy tightening. The Dot chart has not been revised lower significantly, but the statement did say the further rate hikes would be data dependent.

    Gold Technical Levels

    The immediate support is seen at 1069.68 (hourly 50-MA), under which the losses could be extended to 1066.33 (hourly 100-MA). A break lower would expose 1058.41 (Dec 15 low). On the other hand, resistance is seen at 1080.48 (23.6% of Oct high- Dec low), above which the gains could be extended to 1088.85 (Dec 4 high).
    For more information, read our latest forex news.

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