17 Jun 2015
Gold recovers losses after FOMC rate decision
FXStreet (Mumbai) - Gold prices recovered from the low of USD 1175.9/Oz to trade around USD 1183.00 after the Fed kept policy rates unchanged, while revising its 2015 GDP forecast and end-2016 median interest rate forecast lower.
Gains capped on prospects of two rate hikes in 2015
The gains were capped at USD 1183.00 /Oz as the majority of the policy makers see scope for two rate hikes in 2015. All 17 members expect that the appropriate federal funds rate for the end of 2015 should be under 1%. Gains were also capped as Fed said the slack in the job markets has “diminished somewhat” and the economy is growing “moderately”.
Nevertheless, the median estimate for the end of 2016 fell to 1.625%, compared with the 1.875% forecast in March. GDP forecast for 2015 was also revised lower, which ensured the metal popped to a high of USD 1183.1. Focus now shifts to Fed chairwoman Yellen’s press conference for more insights into the timing of the rate hike in the US.
Gold Technical Levels
The immediate resistance is located at 1187.40, above which the gains could be extended to 1194.00. On the flip side, a break below 1182.06 (hourly 200-MA) could push the prices down to 1178.58 (hourly 50-MA).
Gains capped on prospects of two rate hikes in 2015
The gains were capped at USD 1183.00 /Oz as the majority of the policy makers see scope for two rate hikes in 2015. All 17 members expect that the appropriate federal funds rate for the end of 2015 should be under 1%. Gains were also capped as Fed said the slack in the job markets has “diminished somewhat” and the economy is growing “moderately”.
Nevertheless, the median estimate for the end of 2016 fell to 1.625%, compared with the 1.875% forecast in March. GDP forecast for 2015 was also revised lower, which ensured the metal popped to a high of USD 1183.1. Focus now shifts to Fed chairwoman Yellen’s press conference for more insights into the timing of the rate hike in the US.
Gold Technical Levels
The immediate resistance is located at 1187.40, above which the gains could be extended to 1194.00. On the flip side, a break below 1182.06 (hourly 200-MA) could push the prices down to 1178.58 (hourly 50-MA).