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19 Mar 2015
Gold erases gains
FXStreet (Mumbai) - Gold prices erased gains ahead of the European session, tracking a slight recovery in the US dollar. The metal currently trades at USD 1172.2/Oz levels, after having set a session high at USD 1177.8/Oz levels.
Gold at risk of recovery in the USD
The yellow metal may drop further on a potential rebound in the USD. Though the Fed statement released yesterday did revise median interest rates forecasts lower, the June rate hike is still a possibility. Thus, the USD could make a strong comeback.
Meanwhile, the rise in the European equities may not weaken the metal significantly, as the equities too are being propped up by prospects of delay in the interest rate hike in the US.
Gold Technical Levels
The immediate resistance is seen at 1177.8, above which gains could be extended to 1190.00 levels. On the flip side, a break below 1163.7 could drive the prices lower to 1150.00 levels.
Gold at risk of recovery in the USD
The yellow metal may drop further on a potential rebound in the USD. Though the Fed statement released yesterday did revise median interest rates forecasts lower, the June rate hike is still a possibility. Thus, the USD could make a strong comeback.
Meanwhile, the rise in the European equities may not weaken the metal significantly, as the equities too are being propped up by prospects of delay in the interest rate hike in the US.
Gold Technical Levels
The immediate resistance is seen at 1177.8, above which gains could be extended to 1190.00 levels. On the flip side, a break below 1163.7 could drive the prices lower to 1150.00 levels.