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Gold stuck below 23.6% Fibo level despite dovish Fed minutes

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 17, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    Gold refuses to take out resistance at 1211.94 (23.6% of Dec low-Feb high) even though the just released Fed minutes showed rising caution at the Fed amid global turmoil.

    Fed cheers solid job markets

    The treasury yields and the USD remained resilient as most Fed officials saw solid job market and expect inflation rising to 2% over the medium term. Moreover, the policymakers admit that the risks are higher, but have maintained the positive outlook on inflation and labor markets.

    Consequently, Gold has failed to benefit from the dovish statements regarding global turmoil, increased downside risks to the US economy and concerns of a greater-than-expected slowdown in China.

    Gold Technical Levels

    The metal currently trades around USD 1208/Oz levels. The immediate hurdle is seen at 1212 (23.6% of Dec low-Feb high), above which the prices could test 1224.23 (Apr 6 high). On the other hand, a breakdown of immediate support at 1200 could send prices back to 1191.57 (Oct 15 high).
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