18 Nov 2015
Gold off 5-yr lows ahead of FOMC minutes
FXStreet (Mumbai) - Gold prices recovered from the 5-year low of USD 1063.27/Oz levels, but the gains remain capped ahead of the FOMC minutes release.
Hovers around long-term trendline support
The metal currently trades around the support of the long-term trend line drawn from Dec 2013 low to Nov 2014 low seen at USD 1071/Oz levels. Prices have been on a declining trend after the OCT 28 FOMC statement revived December rate hike bets, which were bolstered further after the October NFP number blew past expectations to print at 271K.
The FOMC minutes are widely expected to confirm Dec rate hike. Thus, the metal is having a hard time extending recovery over and above USD 1070/Oz levels.
Gold Technical Levels
A break below 1071, would open doors for a re-test of 1063.27 (daily low). A break below the same would expose 1032.30 (Mar 2008 high). On the other side, resistance is seen at 1078.41 (5-DMA) and 1082.31 (hourly 50-MA).
Hovers around long-term trendline support
The metal currently trades around the support of the long-term trend line drawn from Dec 2013 low to Nov 2014 low seen at USD 1071/Oz levels. Prices have been on a declining trend after the OCT 28 FOMC statement revived December rate hike bets, which were bolstered further after the October NFP number blew past expectations to print at 271K.
The FOMC minutes are widely expected to confirm Dec rate hike. Thus, the metal is having a hard time extending recovery over and above USD 1070/Oz levels.
Gold Technical Levels
A break below 1071, would open doors for a re-test of 1063.27 (daily low). A break below the same would expose 1032.30 (Mar 2008 high). On the other side, resistance is seen at 1078.41 (5-DMA) and 1082.31 (hourly 50-MA).