FXStreet (Mumbai) – Gold prices on Comex jolted higher in Asia, extending its post-FOMC bullish momentum in to the late-Asian session, after the Fed kept interest rates unchanged in its June meeting maintaining that the rate hike timing will be dependent on the strength of the upcoming US macro data.
Gold extends rally towards 100-DMA
Currently, gold trades 0.83% higher at 1186.60, having posted day’s low at 1183.20 and day’s high at 1187.10. Gold extends its rebound and firms up in Asia on falling Asian equities on discouraging China data and stronger yen.
Moreover, the latest dovish FOMC statement with the Fed keeping the interest rate unchanged at a historical minimum in June, despite a limited number of market participants betting on an early move, also supported the demand for the yellow metal as an alternative higher yielding asset.
Meanwhile, the US dollar index, measuring the relative strength of the greenback against a basket of six major currencies, trades -0.19% lower at fresh session lows near 94.30.
Financial markets are now waiting for a host of major US economic releases due later today for further USD moves, while Greece headlines ahead of Euro group meeting due later may also keep the safe-haven bids for gold underpinned.
Gold Technical Levels
The metal has an immediate resistance at 1191.32 (100-DMA) and 1195.60 (June 3 High) levels. Meanwhile, support stands at 1180 below which doors could open for 1175.40 (June 16 Low) levels.
(Market News Provided by FXstreet)