19 Jun 2015
Gold hovers circa $ 1200
FXStreet (Mumbai) - Gold prices on Comex took a breather in its recent upsurge in Asia and moved away from fresh three-week highs printed at 1205.50 on Thursday following softer-CPI figures from the US which eased Sept rate hike expectations, boosting the yellow metal beyond 1200 barrier.
Gold consolidates previous heavy gains
Currently, gold trades -0.17% lower at 1200, oscillating in a $ 2 range since last hours. Gold prices edged lower in Asia largely on profit-taking after the recent rally spurred by Fed’s dovish policy stance. While fresh core inflation numbers surprisingly weakened for the first time this year, which added further to the dovish bias of the Fed.
At the latest Federal Reserve (Fed) meeting at which policymakers confirmed they will not raise rates until the data permits it.
Meanwhile, the US dollar index, measuring the relative strength of the greenback against a basket of six major currencies, trades modestly flat at 94.17, hovering close to session lows printed at 94.09. A weaker US dollar makes dollar priced-in commodities cheaper for holders in foreign currencies.
Traders also keep an eye on Greece which has still not been able to bridge differences with its creditors, despite last-minute efforts to avoid a default.
Gold Technical Levels
The metal has an immediate resistance at 1205.70 (June 18 High) and 1208.90 (May 26 High) levels. Meanwhile, support stands at 1195 below which doors could open for 1191.50 (May 13 Low) levels.
Gold consolidates previous heavy gains
Currently, gold trades -0.17% lower at 1200, oscillating in a $ 2 range since last hours. Gold prices edged lower in Asia largely on profit-taking after the recent rally spurred by Fed’s dovish policy stance. While fresh core inflation numbers surprisingly weakened for the first time this year, which added further to the dovish bias of the Fed.
At the latest Federal Reserve (Fed) meeting at which policymakers confirmed they will not raise rates until the data permits it.
Meanwhile, the US dollar index, measuring the relative strength of the greenback against a basket of six major currencies, trades modestly flat at 94.17, hovering close to session lows printed at 94.09. A weaker US dollar makes dollar priced-in commodities cheaper for holders in foreign currencies.
Traders also keep an eye on Greece which has still not been able to bridge differences with its creditors, despite last-minute efforts to avoid a default.
Gold Technical Levels
The metal has an immediate resistance at 1205.70 (June 18 High) and 1208.90 (May 26 High) levels. Meanwhile, support stands at 1195 below which doors could open for 1191.50 (May 13 Low) levels.