Gold Strengthens From 5-DMA Support
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
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)