Gold hits fresh 2-week highs at $ 1197.50

18 June, 2015

Gold prices on Comex extends its bullish momentum from Asia and climbs more than 1.5% in the European session, after the US dollar extends its broad based sell-off following FOMC’s dovish statement which stated that the rate hike timing will be dependent on the strength of the upcoming US macro data. 

Gold breaks above 50-DMA, eyes $ 1200

Currently, gold trades 1.61% higher at 1195.70, having posted fresh two week highs at 1197.50 in last hours. Gold extends its upward moves and aims higher towards 1200 marker largely on the back of US dollar weakness across the board, boosting the demand for the yellow metal. A weaker US dollar makes dollar priced-in commodities cheaper for holders in foreign currencies.

The US dollar index, measuring the relative strength of the greenback against a basket of six major currencies, trades -0.46% lower at 94.03, hovering close to fresh four week lows printed at 93.82.

Moreover, the latest dovish FOMC statement with the Fed keeping the interest rate unchanged at a historical minimum in June, despite a limited number of market participants betting on an early move, also supported the demand for the yellow metal as an alternative higher yielding asset.

Financial markets are now waiting for a host of major US economic releases due later today for further USD moves, while impending Greece debt talks at the Euro group meeting due later may also keep the safe-haven bids for gold underpinned.

Gold Technical Levels

The metal has an immediate resistance at 1200 and 1204.70 (June 1 High) levels. Meanwhile, support stands at 1180 below which doors could open for 1175.40 (June 16 Low) levels.


Source link  
EUR futures: deeper pullback not ruled out

According to CME Group’s flash data for EUR futures markets, traders increased their open interest positions by more than 19.1K contracts...

US Dollar looks to retake 92.00

The greenback, tracked by the US Dollar Index (DXY), is facing strong resistance in the boundaries of the 92.00 handle ahead of the opening bell...

EUR/GBP hits fresh highs

The British Pound faded UK manufacturing PMI-led minor up-tick, lifting the EUR/GBP cross to fresh highs since mid-March...


Oil sees a flash crash

Oil prices on both sides of the Atlantic witnessed a sharp downward spike, following comments from oil ministers of leading OPEC producers...

Euro under moderate pressure

The research team at Lloyds Bank explains that the euro, along with the pound, has outperformed over the past month...

Gold hanging near 3-week lows

Gold oscillated in a narrow trading band, with slight negative bias, and was seen consolidating...


US Dollar finds buyers around 100.20

The greenback, measured by the US Dollar Index, stays under...

Gold consolidates near $1,260/oz

The ounce troy of the precious metal has reverted yesterday’s pullback and is now trading near session tops around $1,260...

Oil sits at multi-month troughs

Oil benchmarks on both sides of the Atlantic snapped a minor-bounce and traded modestly flat ahead of the European open, as investors remain wary heading towards the inventory report due to be published by the API later on the day...

  


Share: