FXStreet (Mumbai) – The bid tone on Gold strengthened on Thursday on the back of a sustained weakness in the USD index. The metal rise to a high of USD 1198/Oz levels.
Gold rises on US rate outlook
The downward revision of the end-2016 median interest rate forecast by the US Fed on Wednesday pushed the yellow metal higher. The gains were extended today as the metal took out the 50-DMA resistance at USD 1192.50 to print a high of USD 1198/Oz. Moreover, the offered tone on the USD strengthened further in the European session today, pushing the USD index lower by 0.55% to 93.96.
The metal could be influenced by the fresh news over Greek impasse and US CPI and jobless claims data due for release ahead in the day.
Gold Technical Levels
The immediate resistance is located at the psychological level of USD 1200, above which the metal could target 1207.40. On the flip side, a break below 1192.50 (50-DMA) could see the metal re-test the daily low at 1184.1 levels.
(Market News Provided by FXstreet)