17 Jun 2015
Gold dips below hourly 200-MA
FXStreet (Mumbai) - Gold prices fell below the hourly 200-MA located at USD 1179.71/Oz levels ahead of the FOMC statement.
Gold hurt by US rate outlook
The metal is being sold even though the Fed is widely expected to lower economic forecasts and rate projections. However, it is also being speculated that the Fed may drop the word ‘slack’ from its commentary on the labor market. Such an adjustment in the wording could bring the rate hike closer than earlier expected.
Moreover, the Greek impasse is unable to strengthen the safe haven metal, since traders/investors avoid making big bets ahead of the Fed event. In the meantime, the sentiment in the major European equity markets and the movement in the USD index could influence the metal.
Gold Technical Levels
The metal currently trades at USD 1179.4/Oz. The immediate resistance is located at 1179.7 (hourly 200-MA), above which gains could be extended to 1182.57 (hourly 50-MA). On the flip side, a break below 1175.9 under which the metal could target 1172.6.
Gold hurt by US rate outlook
The metal is being sold even though the Fed is widely expected to lower economic forecasts and rate projections. However, it is also being speculated that the Fed may drop the word ‘slack’ from its commentary on the labor market. Such an adjustment in the wording could bring the rate hike closer than earlier expected.
Moreover, the Greek impasse is unable to strengthen the safe haven metal, since traders/investors avoid making big bets ahead of the Fed event. In the meantime, the sentiment in the major European equity markets and the movement in the USD index could influence the metal.
Gold Technical Levels
The metal currently trades at USD 1179.4/Oz. The immediate resistance is located at 1179.7 (hourly 200-MA), above which gains could be extended to 1182.57 (hourly 50-MA). On the flip side, a break below 1175.9 under which the metal could target 1172.6.