Gold Stuck Between Hawkish Fed Speak and Dismal IMF Report
Gold Stuck Between Hawkish Fed Speak and Dismal IMF Report
Gold looks trapped between hawkish comments from Fed officials and bearish global growth forecasts published by the International Monetary Fund (IMF).
Rejected at $1263
Prices
turned lower from a high of $1263 levels even though IMF revised global
growth forecasts lower and stressed the need for an expansionary
monetary policy. Moreover, the buying interest failed to strengthen as
Fed policymakers Harker and Kaplan, both expressed possibility of a faster rate hikes.
A
0.30% rise in the USD index is also weighing over the metal.
Consequently, prices thus fell back into losses are now trading in the
red around $1255 levels.
Gold Technical Levels
The
immediate hurdle is noted at $1266 (monthly 100-MA), above which prices
could target $1283.01 (Mar 11 high). On the other hand, a break below
$1243.98 (previous day’s low) would open doors for a drop to $1233.70
(hourly 200-MA).
