28 Apr 2016
Gold: FOMC-led selling extends, reverts to 1hr 100-SMA
Gold prices extend the overnight bearish run post-FOMC’s status-quo policy decision, and now tests the strong support of hourly 100-SMA at 1240.45.
Gold drifts lower, despite dovish Fed
Currently, gold trades -0.41% lower at fresh session lows of 1240.18, having posted day’s high at 1246.04. The bullion dropped nearly $ 12 in the overnight trades after the Fed kept rates on-hold and turned out somewhat dovish in light of weak price trends. The yellow metal fell largely on the back of risk-on rally seen in the global equities as risk appetite returned to markets after Fed failed to deliver clear hints on June/July rate hikes.
Moreover, persisting broad based US dollar strength also adds to the downside in the gold prices. Meanwhile, among the major Asian indices, the Nikkei jumps +1.41%, Australia’s ASX rises 0.90%, while the Chinese stocks trade moderately higher. With the FOMC decision out of the way, focus now remains on the BOJ policy outcome due out shortly for further impact on the USD, which eventually influences the metal.
Gold Technical Levels
The metal has an immediate resistance at 1250 (psychological levels) and 1257/58 (previous tops). Meanwhile, the support stands at 1239 (50-DMA) below which doors could open for 1235 (round number).
Gold drifts lower, despite dovish Fed
Currently, gold trades -0.41% lower at fresh session lows of 1240.18, having posted day’s high at 1246.04. The bullion dropped nearly $ 12 in the overnight trades after the Fed kept rates on-hold and turned out somewhat dovish in light of weak price trends. The yellow metal fell largely on the back of risk-on rally seen in the global equities as risk appetite returned to markets after Fed failed to deliver clear hints on June/July rate hikes.
Moreover, persisting broad based US dollar strength also adds to the downside in the gold prices. Meanwhile, among the major Asian indices, the Nikkei jumps +1.41%, Australia’s ASX rises 0.90%, while the Chinese stocks trade moderately higher. With the FOMC decision out of the way, focus now remains on the BOJ policy outcome due out shortly for further impact on the USD, which eventually influences the metal.
Gold Technical Levels
The metal has an immediate resistance at 1250 (psychological levels) and 1257/58 (previous tops). Meanwhile, the support stands at 1239 (50-DMA) below which doors could open for 1235 (round number).