Gold regains poise, set to test $ 1250

April 27, 2016

The bullion ran through fresh bids during the European session, now pushing further towards $ 1250 mark as we head closer towards the Fed interest rate decision.

Gold: Short-covering ahead of Fed

Currently, gold trades 0.30% higher at 1246.30, retreating from fresh session lows reached at 1247.80 last hours. The bullion regained lost footing and climbed back higher as markets resorted to repositioning ahead of the key FOMC statement, which may set the tone for further moves in the dollar-denominated yellow metal. Moreover, with markets pricing in a no-hike at today’s meeting, the bullion found fresh impetus and rebounded higher. Gold tends to benefit in a low interest rate environment, as it’s a non-interest paying investment asset.

Although the prices maintain a range bound movement as focus remains on the Fed’s language in the FOMC statement, and if provides any hint on June rate hike prospects. 

Gold Technical Levels

The metal has an immediate resistance at 1250 (psychological levels) and 1257/58 (previous tops). Meanwhile, the support stands at 1241/40 (1h 200-SMA/ round number) below which doors could open for 1238 (1h 50-SMA).

Publication source
HYCM information  HYCM reviews

October 21, 2016
Gold prices drop in Asia amid stronger greenback
On Friday, gold dropped during Asia trade amid a strengthening greenback as well as surging chances of a rate hike weighing on the hedge commodity...
October 21, 2016
ECB holds the rate unchanged with the pressure on Draghi
After a brief upturn seen in the late Asian trading, the currency retreats to the Wednesday close showing a tepid response to the ECB policy update. The New York FED leader William Dudley comments offered a support to the Dollar rally although the focus remained on the US inflation...
October 21, 2016
EURGBP Tests Major Support
This morning we saw the release of German PPI YoY and MoM figures for September. The former fell to -1.4%, compared to expectations of -1.2%. The latter was -0.2%, in line with expectations...

HotForex Rating
Fort Financial Services Rating
FXTM Rating
FIBO Group Rating
HYCM Rating
Vantage FX Rating

TropicalTrade Rating
EZTrader Rating
Grand Option Rating
Empire Option Rating
OptionFair Rating
Porter Finance Rating