30 Mar 2015
Gold drops nearly 1% on Yellen’s comments, Stronger USD
FXStreet (Mumbai) - Gold prices on Comex remains sank in the European morning, diving deeper in to red as the US dollar remained boosted after the Fed Yellen said Fed should raise its rates sometime this year.
Gold below 10-DMA
Currently, gold trades lower by -1% at 1188.70 levels, continuing its downtrend from the previous session as the US dollar was heavily offered against its major competitors as traders continue digesting the latest comments from Federal Reserve (Fed) Chair Janet Yellen.
Yellen said in her speech on Friday, "Like most of my [Federal Open Market Committee] colleagues, I believe that the appropriate time has not yet arrived, but I expect that conditions may warrant an increase in the federal funds rate target sometime this year."
Meanwhile, the US dollar index which measures the relative strength of the greenback against a basket of six major currencies trades higher by 0.34% at 97.95 levels. While hholdings of the fund stood at 737.24 tonnes on Friday, the lowest since January.
Traders will be eyeing the release of US Core PCE Index and pending home sales data for further impact on the gold prices.
Gold Technical Levels
The metal has an immediate resistance at 1195 and 1200 levels. Meanwhile, support stands at 1185 levels below which doors could open for 1179 levels.
Gold below 10-DMA
Currently, gold trades lower by -1% at 1188.70 levels, continuing its downtrend from the previous session as the US dollar was heavily offered against its major competitors as traders continue digesting the latest comments from Federal Reserve (Fed) Chair Janet Yellen.
Yellen said in her speech on Friday, "Like most of my [Federal Open Market Committee] colleagues, I believe that the appropriate time has not yet arrived, but I expect that conditions may warrant an increase in the federal funds rate target sometime this year."
Meanwhile, the US dollar index which measures the relative strength of the greenback against a basket of six major currencies trades higher by 0.34% at 97.95 levels. While hholdings of the fund stood at 737.24 tonnes on Friday, the lowest since January.
Traders will be eyeing the release of US Core PCE Index and pending home sales data for further impact on the gold prices.
Gold Technical Levels
The metal has an immediate resistance at 1195 and 1200 levels. Meanwhile, support stands at 1185 levels below which doors could open for 1179 levels.