17 Jun 2015
Gold weakens in Asia, focus on FOMC statement
FXStreet (Mumbai) - Gold prices weakened moderately in Asia on Wednesday ahead of FOMC statement and amid Greek impasse.
Gold: Safe haven appeal or rate outlook?
It will be interesting to see if the safe haven demand for Gold would be high enough to counter the rate outlook in the US. Greece is running out of time to strike a deal before the remainder of its EUR 240 billion bailout expires on June 30.
Meanwhile, the FOMC statement coupled with the interest rate ‘dot chart’ could significantly alter the interest rate outlook. At the moment, the markets are pricing-in a rate hike in September. The speculation regarding the timing of the rate hike in the US could cap gains in the metal ahead of the FOMC.
Gold Technical Levels
The metal currently trades at USD 1180.7/Oz. The immediate support is located at 1179.63 (hourly 200-MA) could drive the metal lower to 1172.6. On the flip side, a break above 1182.69 (hourly 50-MA) could see the metal target 1190.4.
Gold: Safe haven appeal or rate outlook?
It will be interesting to see if the safe haven demand for Gold would be high enough to counter the rate outlook in the US. Greece is running out of time to strike a deal before the remainder of its EUR 240 billion bailout expires on June 30.
Meanwhile, the FOMC statement coupled with the interest rate ‘dot chart’ could significantly alter the interest rate outlook. At the moment, the markets are pricing-in a rate hike in September. The speculation regarding the timing of the rate hike in the US could cap gains in the metal ahead of the FOMC.
Gold Technical Levels
The metal currently trades at USD 1180.7/Oz. The immediate support is located at 1179.63 (hourly 200-MA) could drive the metal lower to 1172.6. On the flip side, a break above 1182.69 (hourly 50-MA) could see the metal target 1190.4.