Gold Rebounds in Asia Amid Negative Equities
Gold is
seen catching a fresh bid-wave as we progress towards the early
European trades, with the bulls benefiting from poor sentiment amid
lower stocks and oil prices.
Gold picks up strength ahead of Fed decision
Currently,
gold advances 0.30% to 1236, hovering close to fresh session highs
printed at 1237.62 last minutes. Having bottomed out at 1230 levels in
early trades, the recovery in the bullion gained further traction over
the last hour as markets look for safety bets amid falling Asian
equities and the retreat in the oil prices.
Moreover, the yellow
metal is seen correcting a part of Friday’s losses as markets now gear
up for the highly influential event for gold this week, the FOMC
monetary policy decision. In the day ahead, the bullion awaits the US
new home sales data for further moves on the USD, while the sentiment
around the global equities will be closely monitored by the gold
traders.
Gold Technical Levels
The metal has an immediate resistance at 1240/41 (round number/ 1h 200-SMA) and 1244/46 (1h 50 & 100-SMA). Meanwhile, the support stands at 1227 (previous lows) below which doors could open for 1200 (psychological levels).
