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21 May 2015
Gold defends mild gains above $ 1210
FXStreet (Mumbai) - Gold prices on Comex remained modestly higher in Asia, extending its positive bias from Wednesday after the latest release of the Fed's minutes, which provided no new surprises and shed just a little light on the timing of the Fed rate hike.
Gold well supported above $ 1200
Currently, gold trades 0.11% higher at 1210.60, having posted day’s high at 1212.30 and day’s low at 1207.70. Gold held moderate gains as the USD bulls took a back seat after the Fed minutes release yesterday which revealed that a rate hike is doubtful at the next FOMC meeting in June. Although the FOMC remained upbeat on the US economic outlook.
Meanwhile, the dollar index, which measures the currency's strength against its major peers, hovers near session lows at 95.48, recording a -0.20% loss on the day.
However, the upside in gold prices remains capped by rallying Asian equities which dampens gold attractiveness as an alternative is higher yielding asset.
Later in the week, the US inflation figures are scheduled on Friday and are expected to show moderate deflation annually in April, providing another significant element for the Federal Reserve's data dependent mode to pinpoint the optimal timing for a rate hike.
Gold Technical Levels
The metal has an immediate resistance at 1215 and 1220 levels. Meanwhile, support stands at 1203 below which doors could open for 1200 levels.
Gold well supported above $ 1200
Currently, gold trades 0.11% higher at 1210.60, having posted day’s high at 1212.30 and day’s low at 1207.70. Gold held moderate gains as the USD bulls took a back seat after the Fed minutes release yesterday which revealed that a rate hike is doubtful at the next FOMC meeting in June. Although the FOMC remained upbeat on the US economic outlook.
Meanwhile, the dollar index, which measures the currency's strength against its major peers, hovers near session lows at 95.48, recording a -0.20% loss on the day.
However, the upside in gold prices remains capped by rallying Asian equities which dampens gold attractiveness as an alternative is higher yielding asset.
Later in the week, the US inflation figures are scheduled on Friday and are expected to show moderate deflation annually in April, providing another significant element for the Federal Reserve's data dependent mode to pinpoint the optimal timing for a rate hike.
Gold Technical Levels
The metal has an immediate resistance at 1215 and 1220 levels. Meanwhile, support stands at 1203 below which doors could open for 1200 levels.