Gold stuck between hawkish Fed speak and dismal IMF report

Gold looks trapped between hawkish comments from Fed officials and bearish global growth forecasts published by the International Monetary Fund (IMF).

Rejected at $1263

Prices turned lower from a high of $1263 levels even though IMF revised global growth forecasts lower and stressed the need for an expansionary monetary policy. Moreover, the buying interest failed to strengthen as Fed policymakers Harker and Kaplan, both expressed possibility of a faster rate hikes.

A 0.30% rise in the USD index is also weighing over the metal. Consequently, prices thus fell back into losses are now trading in the red around $1255 levels.

Gold Technical Levels

The immediate hurdle is noted at $1266 (monthly 100-MA), above which prices could target $1283.01 (Mar 11 high). On the other hand, a break below $1243.98 (previous day’s low) would open doors for a drop to $1233.70 (hourly 200-MA).