19 Feb 2015
Gold rebounds sharply from 6-week lows, rises above 1%
FXStreet (Mumbai) - Gold prices on Comex extended its recovery in the late-Asian session, rebounded from fresh six week lows overnight after January's FOMC minutes revealed that the consensus among Fed policymakers remains tilted toward a lower-for-longer rate trajectory.
Gold prices heads towards fresh highs
Currently, gold rallied 1.36% at 1216.50 levels, having previously posted fresh session highs at 1217.30 levels some time ago. Gold prices quickly bounced-off sub 1200 levels and extended its uptrend after the Fed maintained its slightly dovish bias stating that raising rates too soon could hinder the fragile economic upside momentum, hurting the US dollar.
Moreover, gold remains underpinned as traders continue monitoring developments in Europe, where Greece is negotiating with its creditors to resolve a debt crisis.
Meanwhile, physical buying was likely to moderate even more as China enters into a week-long Lunar New Year holiday starting today. Also, holdings in the SPDR Gold Trust, the world's biggest gold-backed exchange-traded fund, stood at 768.26 tonnes on Tuesday.
Gold Technical Levels
The metal has an immediate resistance at 1222 (5-DMA) and 1237.53 (50-DMA) levels. Meanwhile, support stands at 1208.70 (Jan 9 Low) levels below which doors could open for 1200 levels.
Gold prices heads towards fresh highs
Currently, gold rallied 1.36% at 1216.50 levels, having previously posted fresh session highs at 1217.30 levels some time ago. Gold prices quickly bounced-off sub 1200 levels and extended its uptrend after the Fed maintained its slightly dovish bias stating that raising rates too soon could hinder the fragile economic upside momentum, hurting the US dollar.
Moreover, gold remains underpinned as traders continue monitoring developments in Europe, where Greece is negotiating with its creditors to resolve a debt crisis.
Meanwhile, physical buying was likely to moderate even more as China enters into a week-long Lunar New Year holiday starting today. Also, holdings in the SPDR Gold Trust, the world's biggest gold-backed exchange-traded fund, stood at 768.26 tonnes on Tuesday.
Gold Technical Levels
The metal has an immediate resistance at 1222 (5-DMA) and 1237.53 (50-DMA) levels. Meanwhile, support stands at 1208.70 (Jan 9 Low) levels below which doors could open for 1200 levels.