Gold Extends the Drop in Asia Amid Broad USD Strength
its retreat from fifteen-month tops into a third day this Wednesday as
the greenback keeps the bids amid renewed hopes of a Fed rate hike as
early as this June.
Gold trades around 5-DMA
Currently, gold drops -0.45% to 1280.30, recovering slightly from session lows struck at 1279.62 in the last hour. The yellow metal remain under heavy selling pressure and moves further away from fresh multi-month highs as the US dollar maintains the bid tone after yesterday’s Fed speaks talked up Fed rate hike prospects for this year.
Atlanta Fed President Dennis Lockhart noted that the US could see two further interest rate rises this year, while San Francisco Fed President John Williams said that he would support an interest-rate hike in June as long as he sees continued progress on US economic growth.
Moreover, markets completely shrugged-off negative performance on the global equity markets and increasing fund inflows, as focus now remains on the upcoming US private sector jobs report and services PMI data in the day ahead, which is expected to provide fresh insights on the US interest rates outlook.
Gold Technical Levels
The metal has an immediate resistance at 1301.79/03.79 (multi-month tops) and 1345 (July 2014 levels). Meanwhile, the support stands at 1275 (round figure) below which doors could open for 1265 (Apr 29 Low).