28 Jan 2015
Gold uninspired by Fed statement
FXStreet (Mumbai) - Gold prices remain largely unchanged around USD 1290/Oz levels after the Federal Reserve (Fed) reiterated that it could be patient with the lift-off in the interest rates.
Strong USD restricting gains in Gold
The strong US dollar continues to cap gains in the yellow metal. The Fed statement did not comment on the strength in the USD, thus creating a more room for a data-driven upside in the USD index. Meanwhile, gains are also being capped by Fed’s bullish view on the US economy. Moreover, the Fed expects the strengthening labor market to push up price pressures in the medium-term.
However, the metal may find support on the sharp weakness in the Treasury yields and Fed’s cautious stance with regards to the situation in the international markets.
Gold Technical Levels
The immediate resistance is seen at 1294.5 and 1300 levels, while the support is located at 1285 and 1275.6 levels.
Strong USD restricting gains in Gold
The strong US dollar continues to cap gains in the yellow metal. The Fed statement did not comment on the strength in the USD, thus creating a more room for a data-driven upside in the USD index. Meanwhile, gains are also being capped by Fed’s bullish view on the US economy. Moreover, the Fed expects the strengthening labor market to push up price pressures in the medium-term.
However, the metal may find support on the sharp weakness in the Treasury yields and Fed’s cautious stance with regards to the situation in the international markets.
Gold Technical Levels
The immediate resistance is seen at 1294.5 and 1300 levels, while the support is located at 1285 and 1275.6 levels.