Gold hits fresh 6-week highs above $ 1300 mark post-BOJ

Gold keeps its week-long bullish streak intact and hovers near multi-week peaks on risk-off market profile spurred by uncertainty about Fed’s rate hike plans for this year, while BOJ’s status-quo further added to the upbeat momentum.

Gold regains $ 1300

Currently, gold now trades 0.53% higher at fresh six-week highs of 1301.36. The bullion quickly stalled its corrective slide and regained poise as the US dollar fell further into losses after BOJ’s status-quo policy decision sent USD/JPY sharply lower to multi-month lows on 104 handle.

The USD sell-off across the board was triggered late-Wednesday by a more dovish tilt revealed by the FOMC statement, where the FOMC members unanimously decided to leave rates unchanged as labour market weakens along with other economic indicators. Hence, markets view that faltering US economic recovery combined with lingering global headwinds may force the Fed to put its plan to gradually normalize interest rates on the back burner, which could turn out to be positive for the non-interest bearing yellow metal.

Looking ahead, the bullion is expected to remain supported amid risk-off trades and a broadly weaker USD, as we head towards the US CPI release due later in the NA session.

Gold Technical Levels                                   

The metal has an immediate resistance at 1303.79 (May 2 high) and 1313.14 (200-WMA). Meanwhile, the support stands at 1295 (round number) below which doors could open for 1286.70 (5-DMA).