Gold Hits Fresh Monthly Lows on Rising Fed Hike Bets
Gold futures on Comex reversed a brief relief rally and resumed the recent downward trajectory as the US dollar continued to remain on a firm footing in a quiet Asian session.
Gold drops to test $ 1210
Currently, gold sinks -0.89% to 1212.60, recovering from fresh one-month lows struck at 1210 during Tokyo open. The yellow metal opened the key NFP week on a bearish note as the USD bulls extended control and pushed the greenback higher across the board on increasing expectations of Fed rate hikes in April and June, especially after Fed official Bullard’s hawkish comments last Thursday.
Moreover, risk-on rally seen in the Japanese and Chinese equity markets amid thin trades and low volatility in observance of Easter Monday, further tarnished the metal’s appeal as a safe-haven.
Markets appear to ignore the rising fund inflows in the yellow metal as focus now remains on Friday’s payrolls data, following positively surprising upward revision of US Q4 GDP. Meanwhile, SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose to 26.48 million ounces on Thursday, the highest since December 2013.
Gold Technical Levels
The metal has an immediate resistance at 1218 (5-DMA) and 1221.92 (1h 50-SMA). Meanwhile, the support stands at 1200 (psychological levels) below which doors could open for 1196.50 (Feb 17 Low).
(Market News Provided by FXstreet)