23 Mar 2015
Gold weakens as USD makes comeback
FXStreet (Mumbai) - Gold prices weakened as the US dollar made a comeback from the lows seen in the Asian session today. The slightly hawkish comments from the Fed policymakers hurt the yellow metal.
Gold: supported by 5-week moving average
The yellow metal managed to sustain above the 5-WMA currently located at USD 1180.04 after having declined from the high of USD 1187.4 levels. Gold came under pressure after the Fed policymakers James Bullard said that the Fed would have to hike rates in future if it falls behind the curve by delaying the first interest rate hike. Bullard’s comments helped strengthen the USD index; currently up 0.31% at 98.36 levels.
The metal could extend losses further in case the ECB president Draghi comes out dovish in his testimony, leading to a further USD strength.
Gold Technical Levels
The metal currently trades 0.30% lower at USD 1181.30/8Oz levels. The immediate support is located at 1178, under which losses could be extended to 1175.58 (50-week MA). On the flip side, resistance is seen at 1184.5 and 1188 levels.
Gold: supported by 5-week moving average
The yellow metal managed to sustain above the 5-WMA currently located at USD 1180.04 after having declined from the high of USD 1187.4 levels. Gold came under pressure after the Fed policymakers James Bullard said that the Fed would have to hike rates in future if it falls behind the curve by delaying the first interest rate hike. Bullard’s comments helped strengthen the USD index; currently up 0.31% at 98.36 levels.
The metal could extend losses further in case the ECB president Draghi comes out dovish in his testimony, leading to a further USD strength.
Gold Technical Levels
The metal currently trades 0.30% lower at USD 1181.30/8Oz levels. The immediate support is located at 1178, under which losses could be extended to 1175.58 (50-week MA). On the flip side, resistance is seen at 1184.5 and 1188 levels.