20 Aug 2015
Gold shoots beyond $ 1141 – at 5-week highs
FXStreet (Mumbai) - Gold futures on Comex extended its upbeat momentum for the fourth straight session and jolted higher to fresh five-week highs ahead of Europe open as the dovish Fed minutes pushed back Sept rate hike expectations while falling global equities also boosted the safe-haven appeal in the yellow metal.
Gold rallies post FOMC minutes
Currently, gold trades 1.14% higher at fresh five week highs of 1141.30, rallying nearly $ 13 from the previous close. The yellow metal remains strongly bid as Sept rate hike expectations waned after the Fed minutes failed to provide any hint on the rate-hike timing which boosted the bullion at the expense of the US dollar.
Meanwhile, the US dollar index, a virtual gauge of greenback’s strength, trades modestly flat at 96.43. A weaker US dollar makes dollar-denominated commodities cheaper for holders in foreign currency.
Moreover, tumbling Asian equities as China's stock market remains a source of major concern, fuelled the risk-off sentiments supporting the upside in the gold prices.
Gold Technical Levels
The metal has an immediate resistance at 1146.30 (July 17 High) and 1150 levels. Meanwhile, support stands at 1132.80 (Today’s Low) below which doors could open for 1127.90 (Aug 19 Close) levels.
Gold rallies post FOMC minutes
Currently, gold trades 1.14% higher at fresh five week highs of 1141.30, rallying nearly $ 13 from the previous close. The yellow metal remains strongly bid as Sept rate hike expectations waned after the Fed minutes failed to provide any hint on the rate-hike timing which boosted the bullion at the expense of the US dollar.
Meanwhile, the US dollar index, a virtual gauge of greenback’s strength, trades modestly flat at 96.43. A weaker US dollar makes dollar-denominated commodities cheaper for holders in foreign currency.
Moreover, tumbling Asian equities as China's stock market remains a source of major concern, fuelled the risk-off sentiments supporting the upside in the gold prices.
Gold Technical Levels
The metal has an immediate resistance at 1146.30 (July 17 High) and 1150 levels. Meanwhile, support stands at 1132.80 (Today’s Low) below which doors could open for 1127.90 (Aug 19 Close) levels.