29 Apr 2015
Gold weakens moderately after Fed termed slowdown as transitory
FXStreet (Mumbai) - Gold prices fell to USD 1201.5, before recovering slightly to trade at USD 1205/Oz levels after the Fed policy statement termed the recent economic slowdown as transitory.
Gold weakens as USD recovers
The USD index got a breather after the Fed statement showed policymakers see moderate growth and job gains even after the slowdown in the first quarter. The Fed also repeated that it wants to be “reasonably” confident on inflation. Consequently, the USD index recovered from the low of 94.81 to 95.26, thereby pushing the metal lower to USD 1201.5.
Gold Technical Levels
The immediate resistance is seen at 1209.72 (200-DMA), above which gains could be extended to 1215.44 (100-DMA). On the flip side, a break below 1200.00 could drive the metal lower to 1194.88 (5-DMA).
Gold weakens as USD recovers
The USD index got a breather after the Fed statement showed policymakers see moderate growth and job gains even after the slowdown in the first quarter. The Fed also repeated that it wants to be “reasonably” confident on inflation. Consequently, the USD index recovered from the low of 94.81 to 95.26, thereby pushing the metal lower to USD 1201.5.
Gold Technical Levels
The immediate resistance is seen at 1209.72 (200-DMA), above which gains could be extended to 1215.44 (100-DMA). On the flip side, a break below 1200.00 could drive the metal lower to 1194.88 (5-DMA).