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19 Mar 2015
Gold bounces-off fresh 2-week highs above USD 1170
FXStreet (Mumbai) - Gold prices on Comex rebounded sharply from its recent four-month low and rallied to fresh two-week highs in the Asian session, as traders interpreted the FOMC statement and projections as more dovish than expected, indicating a shift in rate hikes.
Gold supported above USD 1170
Currently, gold trades higher by 1.74% at 1171.30, having previously posted fresh two week highs at 1177. Gold prices swung back higher after the US central bank removed the word 'patience' from its monetary policy statement - a widely expected move by the markets -but also scaled back expectations on how fast it will move, indicating the first rate hike might not take place until September. The bank even said an increase in rates at its April meeting "remains unlikely."
Meanwhile, gold continues to remain higher, despite a rebound in the US dollar, as the US treasury yields remain weak boosting attractiveness of the yellow metal as a higher yielding asset.
Gold Technical Levels
The metal has an immediate resistance at 1177 and 1190 levels. Meanwhile, support stands at 1169.50 (Today’s low) levels below which doors could open for 1165 levels.
Gold supported above USD 1170
Currently, gold trades higher by 1.74% at 1171.30, having previously posted fresh two week highs at 1177. Gold prices swung back higher after the US central bank removed the word 'patience' from its monetary policy statement - a widely expected move by the markets -but also scaled back expectations on how fast it will move, indicating the first rate hike might not take place until September. The bank even said an increase in rates at its April meeting "remains unlikely."
Meanwhile, gold continues to remain higher, despite a rebound in the US dollar, as the US treasury yields remain weak boosting attractiveness of the yellow metal as a higher yielding asset.
Gold Technical Levels
The metal has an immediate resistance at 1177 and 1190 levels. Meanwhile, support stands at 1169.50 (Today’s low) levels below which doors could open for 1165 levels.