Gold sits at post-FOMC minutes highs, around $ 1226

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 7, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    Gold prices found fresh bids over the last hours and jumped back on the bids as the sentiment soured on the Asian indices, while a weaker USD also supported the gains.

    Gold: Higher oil restrict the upside

    Currently, gold trades marginally higher at 1225.95, flirting with session highs previously posted at 1226.64. The yellow metal catches fresh bids and now attempts to extend to the upside as the turnaround in the risk sentiment, after the Asian markets turned lower, boosted the safe-haven appeal of the bullion.
    While the dovish FOMC minutes induced losses in the greenback across the board, also provide support to the precious metal. Meanwhile, the USD index is down 0.05% at 94.46 levels.

    As Reuters reports, “Minutes from the Fed's March 15-16 policy meeting released on Wednesday showed that policymakers debated whether an interest rate hike would be needed in April though a consensus emerged that risks from a global economic slowdown warranted a cautious approach.”

    Further, evidencing increased investors’ confidence in gold, assets in SPDR Gold Trust), the world's largest gold-backed exchange-traded fund, rose 0.51% to 819.60 tonnes on Wednesday, the first inflow in nearly two weeks.

    Gold Technical Levels

    The metal has an immediate resistance at 1233.54 (20-DMA) and 1240 (round number). Meanwhile, the support stands at 1221.30 (50-DMA) below which doors could open for 1215/14 (previous lows).
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