Gold: Weaker Heading into the FOMC Week
Gold futures on Comex is seen making minor recovery attempts so far this session, kicking-off the week on a bearish note as the bulls remains cautious ahead of the key FOMC decision.
Gold back above $ 1250
Currently, gold trades -0.20% to 1256.80, having posted day’s low at 1248.90 and day’s high at 1257.30. Amid a better risk tone prevalent in the markets, the sellers are seen in complete control, as higher Asian equities diminish the safe-haven bids for gold.
Adding to the downward pressure on the bullion, the Asian physical demand took a hit, with the Chinese buying slowing down, while a strike by jewellers on the back of import duty levied curbed the demand in No. 2 market India.
However, offering some respite to the bulls, hedge funds and money managers increased their bullish position in COMEX gold to the highest in 13 months in the week to March 8, CFTC data showed, as safe-haven buying lifted prices to the highest since February 2015.
Focus now remains on a host of central banks’ policy decisions for further impact on the gold price action, especially after last week ECB surprise move. FOMC due out on Wednesday is likely to emerge the main driver for gold this week.
Gold Technical Levels
The metal has an immediate resistance at 1260 (round number) and 1276.30 (Mar 8 High). Meanwhile, the support stands at 1248.90 (daily low) below which doors could open for 1240.
(Market News Provided by FXstreet)
