Gold holding stable around $1318

27 July, 2016

After dipping to $1315 region, Gold has managed to recover the lost ground and is currently trading nearly unchanged around $1318 level, awaiting for fresh impetus from FOMC monetary policy decision.

On Tuesday, the yellow metal got a boost as the US Dollar remained on the back foot amid intense selling pressure against the Japanese Yen. The up-move, however, was capped as strong US economic data further added to expectations of an imminent Fed rate-hike in 2016 and provided the much needed respite for the US Dollar that weighed on dollar-denominated commodities, including gold.

Meanwhile, mixed sentiment around equity markets has failed to act as a supportive pillar for the safe-haven appeal of the precious metal. 

Investors’ sentiment towards the precious metal, however, would now be determined by the outcome of Fed monetary policy meeting. Hawkish monetary statement would certainly be supportive for the greenback and would eventually drive gold in the near-term.

Trade July 27 Federal Reserve interest rate decision - Live Coverage

Technical levels to watch

On the immediate upside, $1325 level remains immediate resistance to clear. Momentum above this immediate resistance, and a subsequent strength above 20-day SMA resistance near $1335 region, would enable the commodity to head back towards its next important resistance near $1350 level.

Meanwhile on the downside, weakness below $1312 recent lows support now seems to force the metal to break below $1305-1300 strong support and aim towards testing 50-day SMA support near $1290 region.


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: