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20 May 2015
Gold hovers around $1207
FXStreet (Mumbai) - Gold prices on Comex continued to trade around a flat line the European session, consolidating previous losses and awaits fresh incentives from the upcoming FOMC minutes which may have major impact on the US dollar.
Gold recovers from $ 1203 lows
Currently, gold trades flat at 1206.40, having posted day’s high at 1209.10 and day’s low at 1202.90. Gold trades directionless this session as all eyes are on the Fed minutes from its most recent meeting, due to be published later in the day, as market believes the document will somehow provide a clearer answer to the question of when the US central bank will start to raise its interest rates.
Meanwhile, the US dollar remains well bid across the board, capping the upside in gold prices. The dollar index, which measures the currency's strength against its major peers, retreated from 95.94 highs and now trades at 95.60, recording a 0.24% gain on the day.
Later in the week, the US inflation figures are scheduled on Friday and are expected to show moderate deflation annually in April, providing another significant element for the Federal Reserve's data dependent mode to pinpoint the optimal timing for a rate hike.
Gold Technical Levels
The metal has an immediate resistance at 1210 and 1215 levels. Meanwhile, support stands at 1203 below which doors could open for 1200 levels.
Gold recovers from $ 1203 lows
Currently, gold trades flat at 1206.40, having posted day’s high at 1209.10 and day’s low at 1202.90. Gold trades directionless this session as all eyes are on the Fed minutes from its most recent meeting, due to be published later in the day, as market believes the document will somehow provide a clearer answer to the question of when the US central bank will start to raise its interest rates.
Meanwhile, the US dollar remains well bid across the board, capping the upside in gold prices. The dollar index, which measures the currency's strength against its major peers, retreated from 95.94 highs and now trades at 95.60, recording a 0.24% gain on the day.
Later in the week, the US inflation figures are scheduled on Friday and are expected to show moderate deflation annually in April, providing another significant element for the Federal Reserve's data dependent mode to pinpoint the optimal timing for a rate hike.
Gold Technical Levels
The metal has an immediate resistance at 1210 and 1215 levels. Meanwhile, support stands at 1203 below which doors could open for 1200 levels.