Gold Sits Near 2-Week Lows Around $ 1230, Fed in focus
Gold futures on Comex extend the sell-off for the third consecutive day this Tuesday, and hovers near the lowest levels since March 2, as all eyes remain on the upcoming central banks’’ events globally.
Gold surrenders $ 30 so far this week
Currently, gold sinks -1.30% to 1228.90, recovering slightly from fresh 9-day lows struck at 1226.50 in early Asia. The yellow metal is seen making minor-recovery attempt over the last few hours, although remains near close to 2-week lows as markets lock-in gains after the recent strength, ahead of the key BOJ and Fed policy decisions.
Further, in an evidence of diminishing investors’ confidence in the bullion, SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings dropped sharply by 1.08% to 790.14 tonnes on Monday from 798.77 tonnes on Friday. In terms of ounces, holdings fell to 25,403,927.26 ounces from 25,681,155.43.
Focus remains on the main risk event for gold this week; the FOMC statement due on Wednesday, with markets expecting the Fed to stay on hold. Although the Fed statement may shed more light on the Fed’s interest rates outlook for 2016, which could have major impact on the non-interest bearing gold.
Gold Technical Levels
The metal has an immediate resistance at 1237.70/40 (daily high/ round number) and 1243.23 (1h 20-SMA). Meanwhile, the support stands at 1225 (key support) below which doors could open for 1220/1218.60 (psychological levels/ Feb 29 Low).
(Market News Provided by FXstreet)
