Gold Strengthens From 5-DMA Support
Gold
found support at 5-DMA level of $1224.57 and strengthened to a high of
$1231.72 levels amid volatility in the FX markets and rise in European
equities.
Dovish Fed minutes support gold
Minutes
from the Fed's March policy meeting released Wednesday signaled that
the central bank is unlikely to raise interest rates before June.
Moreover, policymakers also stand divided on April rate hike and believe
downside risks to the US economy have increased.
Consequently,
gold advanced in early Europe. Meanwhile, volatility in the FX markets
triggered by a sharp rise in Yen is also keeping safe haven demand for
Yen intact.
However, the gains are being capped by a 0.40% rise
in the pan-European Stoxx 50 index. Ahead in the day, FX market
volatility and US initial jobless claims could influence the metal.
Gold Technical Levels
Acceptance
immediate support at $1221 (50-DMA) would open doors for a slide to
$1207.69 (Mar 28 low) and 1200 levels. On the higher side, violation at
$1244.12 (Mar 30 high) would expose $1253.32 (Feb 24 high) and $1260
(Mar 22 high).
(Market News Provided by FXstreet)
