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20 May 2015
Gold hovers around USD 1210, struggles to extend gains
FXStreet (Mumbai) - Gold prices are struggling to extend gains as the metal trades around USD 1210/Oz levels after the fed minutes failed to alter the rate hike expectations in the market.
Gold stuck as USD index unchanged
The USD index hardly reacted to the Fed minutes, trading around 95.50 at the time of writing. Consequently, the metal remains stuck around USD 1210/Oz, unable to move higher. The gains have been capped since the Fed September rate hike is still a possibility.
On the other hand, losses have been capped since policymakers do not see a June rate hike happening. Furthermore, the policymakers also acknowledged increased uncertainty about the outlook. Moreover, the related markets have stayed largely unresponsive – Treasury yields remain moderately low, while the USD index stays unresponsive.
Gold Technical Levels
The immediate resistance is seen at 1215.1 (Apr. 28 high) and 1218 (5-DMA). On the flip side, a break below 1207.28 (200-DMA), could see the prices revisit the daily low at 1203.
Gold stuck as USD index unchanged
The USD index hardly reacted to the Fed minutes, trading around 95.50 at the time of writing. Consequently, the metal remains stuck around USD 1210/Oz, unable to move higher. The gains have been capped since the Fed September rate hike is still a possibility.
On the other hand, losses have been capped since policymakers do not see a June rate hike happening. Furthermore, the policymakers also acknowledged increased uncertainty about the outlook. Moreover, the related markets have stayed largely unresponsive – Treasury yields remain moderately low, while the USD index stays unresponsive.
Gold Technical Levels
The immediate resistance is seen at 1215.1 (Apr. 28 high) and 1218 (5-DMA). On the flip side, a break below 1207.28 (200-DMA), could see the prices revisit the daily low at 1203.