Gold Rebounds in Asia Amid Negative Equities
seen catching a fresh bid-wave as we progress towards the early
European trades, with the bulls benefiting from poor sentiment amid
lower stocks and oil prices.
Gold picks up strength ahead of Fed decision
Currently, gold advances 0.30% to 1236, hovering close to fresh session highs printed at 1237.62 last minutes. Having bottomed out at 1230 levels in early trades, the recovery in the bullion gained further traction over the last hour as markets look for safety bets amid falling Asian equities and the retreat in the oil prices.
Moreover, the yellow metal is seen correcting a part of Friday’s losses as markets now gear up for the highly influential event for gold this week, the FOMC monetary policy decision. In the day ahead, the bullion awaits the US new home sales data for further moves on the USD, while the sentiment around the global equities will be closely monitored by the gold traders.
Gold Technical Levels
The metal has an immediate resistance at 1240/41 (round number/ 1h 200-SMA) and 1244/46 (1h 50 & 100-SMA). Meanwhile, the support stands at 1227 (previous lows) below which doors could open for 1200 (psychological levels).