Gold rallies after Fed expressed worry over strong US dollar

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 27, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - Gold prices rose to a fresh daily high of USD 1124.10 after the FOMC statement took note of the adverse impact of the strong US dollar on exports and inflation.

    Above 50% fib level

    The prices are hovering above 1118.85 (50% of Oct high-Dec low). The US stocks remain in red, while the USD index is largely resilient around 99.00 levels. Still, the yellow metal managed to clock fresh session highs and that may be due to a moderate weakness in the 2-yr treasury yield, which mimics short-term rate expectations.

    At USD 1122; the metal is up 0.16% on the day. The upside is being capped as the Fed reaffirmed their plan to tighten policy gradually.

    Gold Technical Levels

    The immediate support is seen at 1113.15 (Jan 8 high), under which the prices could drop to 1105.08 (50-DMA). On the other hand, a break above 1131.26 (200-DMA) would open doors for a rally to 1136 (61.8% of Oct high-Dec low).
    For more information, read our latest forex news.

Share This Page

free forex signals