FXStreet (Mumbai) – Gold prices strengthened moderately to USD 1100/Oz, but failed to take out he same as the FOMC statement carried a slightly hawkish tone.
Treasury yields rise, Gold back into losses
The treasury yields at the long-end and short-end of the curve rose as the Fed said job gains remain “solid” and that the underutilization of the labour resources has “diminished”. The Fed said rates could rise after “some further” improvement in the job market, while adding that risks to the outlook are “nearly balanced”.
The USD was initially sold, thereby pushing gold to USD 1100/Oz on the words “some further improvement needed before rates rise.” However, the overall upbeat tone of the policy statement helped the USD recover losses and pushed the metal back to USD 1095/Oz levels.
Gold Technical Levels
The immediate resistance is seen at 1100, followed by another resistance at 1109.82 (July 21 high).On the flip side, support is seen at 1.086.94 (July 22 low) and 1073.10 (July 24 low).
(Market News Provided by FXstreet)