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18 Dec 2015
Gold stages a modest recovery from near 5-yr low
FXStreet (Mumbai) - Gold prices breathe a sigh of relief in Asia and extend beyond 1050 barrier, after having threatened almost the lowest levels since Fed 2010 in the last US session.
Gold testing $ 1055
Currently, gold trades marginally higher at 1054.10, hovering close to fresh session highs posted at 1054.90 last hours. The yellow metal’s pullback from multi-year lows gains further traction as the Asian equities track the Wall Street lower on the back of renewed weakness in oil prices, and thereby boosted the safe-haven bids for gold.
Looking ahead, with no significant economic releases in the day ahead, the latest Fed decision will continue to weigh on the gold prices. While a host of macro data due next will be closely watched as the Fed suggested that the future rate hikes would remain data-dependent.
Fed’s favourite inflation gauge, US Q3 GDP revision and home sales data will be released next week before the market takes a break for the Christmas holidays.
Gold Technical Levels
The metal has an immediate resistance at 1060 (round number) and 1063.50 (1h 50-SMA). Meanwhile, the support stands at 1046.90 (Dec 17 Low), below which doors could open for 1040 (Feb 2010 levels).
Gold testing $ 1055
Currently, gold trades marginally higher at 1054.10, hovering close to fresh session highs posted at 1054.90 last hours. The yellow metal’s pullback from multi-year lows gains further traction as the Asian equities track the Wall Street lower on the back of renewed weakness in oil prices, and thereby boosted the safe-haven bids for gold.
Looking ahead, with no significant economic releases in the day ahead, the latest Fed decision will continue to weigh on the gold prices. While a host of macro data due next will be closely watched as the Fed suggested that the future rate hikes would remain data-dependent.
Fed’s favourite inflation gauge, US Q3 GDP revision and home sales data will be released next week before the market takes a break for the Christmas holidays.
Gold Technical Levels
The metal has an immediate resistance at 1060 (round number) and 1063.50 (1h 50-SMA). Meanwhile, the support stands at 1046.90 (Dec 17 Low), below which doors could open for 1040 (Feb 2010 levels).