29 Apr 2015
Gold erases losses on a dismal US GDP report
FXStreet (Mumbai) - Gold prices recovered losses on Wednesday as a weaker-than-expected first quarter US GDP report increased bets of a delay its interest rate hike in the US.
Gold back above 200-DMA
The metal recovered to trade above its 200-DMA located at USD 1209.75/Oz after the US Commerce Department data showed the economic growth in the first quarter slowed down to an annualised rate of 0.2%, missing the estimate of 1% by a big margin. The GDP in the Q4 2014 was 2.2%.
A weak GDP data comes ahead of the FOMC policy statement, which is expected to show the policymakers are in favor of delaying the rate hike to late 2015 or early 2016. Gold prices are inversely related to the interest rates.
Gold Technical Levels
The metal currently trades at USD 1210.00/Oz, with the immediate support seen at 1209.75 (200-DMA) and 1200.00 levels.On the other hand, resistance is seen at 1215.49 (100-DMA) and 1224.4 (Apr. 6 high).
Gold back above 200-DMA
The metal recovered to trade above its 200-DMA located at USD 1209.75/Oz after the US Commerce Department data showed the economic growth in the first quarter slowed down to an annualised rate of 0.2%, missing the estimate of 1% by a big margin. The GDP in the Q4 2014 was 2.2%.
A weak GDP data comes ahead of the FOMC policy statement, which is expected to show the policymakers are in favor of delaying the rate hike to late 2015 or early 2016. Gold prices are inversely related to the interest rates.
Gold Technical Levels
The metal currently trades at USD 1210.00/Oz, with the immediate support seen at 1209.75 (200-DMA) and 1200.00 levels.On the other hand, resistance is seen at 1215.49 (100-DMA) and 1224.4 (Apr. 6 high).