18 Feb 2015
Dovish language in Fed minutes helps gold recover losses
FXStreet (Mumbai) - Gold prices recovered losses to trade at USD 1209/Oz levels after the Federal Reserve (Fed) minutes released today showed officials leaning towards keeping interest rates lower longer period of time.
Gold recovers from 61.8% Fib levels
Gold prices bounced back into the positive territory from the 61.8% retracement level of 1131.7-1307.9 located at USD 1198.9 after the Fed minutes revealed Policymakers want more evidence of continued growth and signs of inflation picking up before liftoff. Furthermore, few policymakers also pointed to the risk of dollar appreciating further, which could act as a restraint on US net exports.
The dovish tone with regards to interest rates pushed Gold higher to the 100-DMA located at USD 1213.82 levels, before settling slightly lower at USD 1210/Oz levels.
Gold Technical Levels
The immediate resistance is seen at 1213.82, above which gains could be extended to 1219.6 levels. On the flip side, support is seen at 1198.9 and 1182.8 levels.
Gold recovers from 61.8% Fib levels
Gold prices bounced back into the positive territory from the 61.8% retracement level of 1131.7-1307.9 located at USD 1198.9 after the Fed minutes revealed Policymakers want more evidence of continued growth and signs of inflation picking up before liftoff. Furthermore, few policymakers also pointed to the risk of dollar appreciating further, which could act as a restraint on US net exports.
The dovish tone with regards to interest rates pushed Gold higher to the 100-DMA located at USD 1213.82 levels, before settling slightly lower at USD 1210/Oz levels.
Gold Technical Levels
The immediate resistance is seen at 1213.82, above which gains could be extended to 1219.6 levels. On the flip side, support is seen at 1198.9 and 1182.8 levels.