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Gold pops to 5-DMA as USD index falls

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 16, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    Fed’s status quo policy coupled with dovish “dot chart” and downward revision of GDP forecasts pushed the USD index lower and Gold higher.

    Stuck at 5-DMA

    Prices jumped from $1230, but appear stuck at 5-DMA hurdle at $1247.34 levels. Falling treasury yields and resulting drop in the USD helped the metal rally. Moreover, policymakers now see only two rate hikes this year as opposed to a possibility of four rate hikes seen in December.

    The focus now is Yellen’s press conference. Markets would be interested to hear more from Yellen on possible timing of a rate hike this year.

    Gold Technical Levels

    The immediate hurdle is seen at above 1254.06 (10-DMA). A violation there would expose 1261.15 (previous day’s high). On the other hand, immediate support is seen at 1227 (23.6% of Dec low-Mar high), under which prices could test bid around 1200 levels.
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