FXStreet (Mumbai) – Gold prices on Comex gave away early gains and slipped in to the red zone once again on Thursday, extending losses from the previous session following the latest FOMC statement as the US currency strengthened against all its major counterparts and dollar-backed commodities.
Gold drops from 1097 levels
Currently, gold trades -0.11% lower at 1092.20, hovering close to lows printed at 1091.90. Gold halted its rebound and reverted in to the negative territory as higher Asian equities coupled with stronger US dollar dragged the yellow metal back down towards five year lows.
A widely expected, FOMC statement turned out to be a non-event and dovish, however Fed officials sounded optimistic on the US economic recovery and remained on track to raise rates this year which spurred USD rally.
At the moment, the US dollar index, a virtual gauge of greenback’s strength, trades 0.11% higher at 97.33. A stronger greenback makes dollar-priced in gold more expensive to holders on other currencies and vice-versa.
Looking ahead, gold prices may be influenced by US macro data while reports that global precious metal refiner Valcambi suggested that gold imports into China may plunge as much as 40% this year due to a reduced need to back financial deals also weighed on gold prices.
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Gold Technical Levels
The metal has an immediate resistance at 1100 and 1105 levels. Meanwhile, support stands at 1090 below which doors could open for 1085 levels.
(Market News Provided by FXstreet)