FXStreet (Mumbai) – Gold recovered from the daily lows; but is having a tough time inching higher despite BOJ’s negative rate surprise.

Gold up in JPY terms

The yellow metal spiked in JPY terms as the Japanese currency took a hit after BOJ pushed rates into the negative territory. The rally in Gold in JPY and other Asian currency terms could have helped the yellow metal recovery from the low of USD 1108.20 to trade around USD 1115.40/Oz levels.

Ahead in the day, the metal could witness action if the US GDP figures significantly affect the Fed rate hike bets.

Gold Technical Levels

The immediate resistance is seen at 1118.85 (50% of Oct high – Dec low), above which prices could rise to 1128.12 (Jan 27 high). On the other hand, a break below 1113.15 (Jan 8 high) would open doors for a drop to 1105.24 (100-DMA).

Gold recovered from the daily lows; but is having a tough time inching higher despite BOJ’s negative rate surprise.

(Market News Provided by FXstreet)

By FXOpen