Gold Sits at Post-FOMC Minutes Highs, Around $ 1226
Gold prices
found fresh bids over the last hours and jumped back on the bids as the
sentiment soured on the Asian indices, while a weaker USD also
supported the gains.
Gold: Higher oil restrict the upside
Currently,
gold trades marginally higher at 1226.45, flirting with session highs
previously posted at 1226.64. The yellow metal catches fresh bids and
now attempts to extend to the upside as the turnaround in the risk
sentiment, after the Asian markets turned lower, boosted the safe-haven
appeal of the bullion.
While the dovish FOMC minutes induced losses
in the greenback across the board, also provide support to the precious
metal. Meanwhile, the USD index is down 0.05% at 94.46 levels.
As
Reuters reports, “Minutes from the Fed's March 15-16 policy meeting
released on Wednesday showed that policymakers debated whether an
interest rate hike would be needed in April though a consensus emerged
that risks from a global economic slowdown warranted a cautious
approach.”
Further, evidencing increased investors’ confidence in
gold, assets in SPDR Gold Trust), the world's largest gold-backed
exchange-traded fund, rose 0.51% to 819.60 tonnes on Wednesday, the
first inflow in nearly two weeks.
Gold Technical Levels
The
metal has an immediate resistance at 1233.54 (20-DMA) and 1240 (round
number). Meanwhile, the support stands at 1221.30 (50-DMA) below which
doors could open for 1215/14 (previous lows).
