16 Dec 2014
Gold back below USD 1200/Oz
FXStreet (Mumbai) - The sharp rise in the yellow metal witnessed at the onset of the US session could not be sustained as the metal declined to trade below the USD 1200 mark.
For the day, Gold now trades 1.09% lower at USD 1194.50/Oz levels. The metal has also breached the 50-DMA support located at USD 1197 levels. Moreover, the sharp fall is being witnessed despite of a weaker-than-expected Housing as well as the Markit manufacturing PMI data in the US. The USD index too, trades largely unchanged since last couple of hours.
Moreover, the yellow metal may have come under pressure as markets expect the Federal Reserve policy statement to show a change in language with regards to the interest rate hikes in the US. With quarterly growth at decade high and a strong labor market recovery, it is widely expected that the Fed would drop “considerable time” phrase from its policy statement tomorrow.
Gold Technical Levels
Gold has an immediate support located at 1191.30 (Dec. 15 low), under which the prices may test 1186.40 (Dec. 5 low). Meanwhile, resistance is seen at 1197 (50-DMA) and 1208.00 levels.
For the day, Gold now trades 1.09% lower at USD 1194.50/Oz levels. The metal has also breached the 50-DMA support located at USD 1197 levels. Moreover, the sharp fall is being witnessed despite of a weaker-than-expected Housing as well as the Markit manufacturing PMI data in the US. The USD index too, trades largely unchanged since last couple of hours.
Moreover, the yellow metal may have come under pressure as markets expect the Federal Reserve policy statement to show a change in language with regards to the interest rate hikes in the US. With quarterly growth at decade high and a strong labor market recovery, it is widely expected that the Fed would drop “considerable time” phrase from its policy statement tomorrow.
Gold Technical Levels
Gold has an immediate support located at 1191.30 (Dec. 15 low), under which the prices may test 1186.40 (Dec. 5 low). Meanwhile, resistance is seen at 1197 (50-DMA) and 1208.00 levels.