Gold off 12-week highs, but regains 200-DMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 28, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - Gold halted its sharp corrective slide from almost three-month top post-FOMC decision and now regains 200-DMA on its recovery from near $ 1119 region.

    Gold: FOMC dovish or not?

    Currently, gold trades 0.55% higher at 1121.90, revering a dip to session lows struck at 1118.90 in early Asia. Gold appears to regain momentum and climbs higher, as the risk conditions seem to deteriorate with the Asian indices turning lower alongside oil, which boosts the safe-haven bids for the yellow metal.

    Moreover, the latest FOMC decision continues to remain on investors’ minds, with markets divided that the Fed statement was dovish or not. That said, the Fed kept its policy settings unchanged and remained on track to raise rates gradually this year. However, it did raise concerns over the implications of the recent global developments on the US economic outlook.

    Looking ahead, the bullion awaits a series of macro updates due from the US today as well as tomorrow, with the crucial durable goods orders and advance GDP numbers closely eyed.

    Gold Technical Levels

    The metal has an immediate resistance at 1130 (round number) and 1134.70 (Nov 3 High). Meanwhile, the support stands at 1119.39/ 1118.40 (200-DMA/ Jan 26 Low) below which doors could open for 1114.46 (5-DMA)
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