20 Mar 2015
Gold likely to end the two-week losing streak
FXStreet (Mumbai) - Gold prices appear on a course to end the week higher, thereby ending the two-week losing streak after the Federal Reserve surprised markets earlier this week by reducing estimates for interest-rate increases.
Gold supported by a decline in the US rate hike bets
The yellow metal found support as the slightly dovish Fed policy statement released earlier this week saw investors pushed back the rate hike expectations. The interest rate futures traders now see a 44% probability that the benchmark rate will increase by September, from a 55% probability seen before the Wednesday's Fed announcement.
Consequently, Gold recovered from the pre-Fed low of USD 1142.6/Oz to trade at the current level of USD 1171.3/Oz levels.
Gold Technical Levels
The immediate support is located at 1168.8, under which losses could be extended to 1164.20 (5-DMA). On the flip side, resistance is seen at 1177.8 and 1190.9 levels.
Gold supported by a decline in the US rate hike bets
The yellow metal found support as the slightly dovish Fed policy statement released earlier this week saw investors pushed back the rate hike expectations. The interest rate futures traders now see a 44% probability that the benchmark rate will increase by September, from a 55% probability seen before the Wednesday's Fed announcement.
Consequently, Gold recovered from the pre-Fed low of USD 1142.6/Oz to trade at the current level of USD 1171.3/Oz levels.
Gold Technical Levels
The immediate support is located at 1168.8, under which losses could be extended to 1164.20 (5-DMA). On the flip side, resistance is seen at 1177.8 and 1190.9 levels.