FXStreet (Mumbai) – Gold prices inched lower on Thursday in what appears to be a delayed reaction the slightly hawkish FOMC statement released on Wednesday.
Gold drops to 5-day low
The metal hit a 5-day low of USD 1087.71/Oz tracking the USD index, which is up 0.22% at 97.40. The prices were rejected at the USD 1100 handle after the release of the FOMC statement. The initial reaction to Fed’s words – some more improvement in labor market before rate hike – pushed the metal to USD 1100.
However, the overall upbeat tone of the statement meant the Fed is one more step closer to the rate hike. Consequently, the USD index recovered, while Gold prices dropped into losses in the Asian session today. Ahead in the day, the focus is likely to be on the US GDP and weekly jobless claims data.
Gold Technical Levels
The immediate support is seen at 1073.10 (July 24 low), under which the prices could extend the drop to 1050.00. On the other hand, resistance is seen at 1098.40 (hourly 200-MA) and 1105.00 (July 27 high).
(Market News Provided by FXstreet)