Gold dumped to fresh 10-month lows on hawkish FOMC

Gold is making minor-recovery attempts in mid-Asia, moving slightly from fresh ten-month troughs reached at $ 1136 post-Tokyo open.

Gold sub-1150 levels

Currently, Comex gold futures trade with size-able losses around $ 1145, now extending the recovery to regain 1150 barrier. Gold prices recovered a minor portion of the previous hawkish FOMC-triggered extensive slide, as the greenback eased from multi-year highs reached against its main rivals, following Wednesday’s Fed’s rate hike and hawkish guidance.

Fed hiked interest rates by 25 bps as widely expected, at the same time signaled a faster pace of tightening next year, lifting 2 rate hikes seen in Sept to 3.  The hawkish stance adopted by the Fed weighed heavily on the non-interest bearing gold.

Meanwhile, the USD index now trades +0.16% higher at 102.20, reversing a spike to 102.60 earlier on the day. The US treasury yields, especially the short-duration yields, jump over 2%.

Focus now shifts to the BOE rate decision and a fresh batch of US fundamentals, including CPI report, due later in the NA session.

Comex Gold Technical Levels                                  

The metal has an immediate resistance at 1150 (round figure) and 1157.30 (5-DMA). Meanwhile, the support stands at 1136 (10-month low) below which doors could open for 1133 (daily S2).