27 Apr 2016
Gold erases gains after Fed decision
Gold prices advanced heading into the Fed’ decision, with spot reaching a fresh weekly high of $1,252.71 an ounce before turning south after the announcement to finally close pretty much flat around 1,243.90.
The early rally in the commodity was supported by a softer greenback, whilst the late decline is being blamed on risk appetite, as speculation that the US Central Bank will remain on hold for longer, is fueling demand for stocks.
Gold technical perspective
“The base metal maintains therefore the neutral stance seen lately, and in the daily chart, the price is standing barely above its 20 SMA, whilst the technical indicators head slightly lower around their mid-lines, lacking clear directional conviction,” said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term, the 4 hours chart shows that the technical indicators have turned lower, but remain above their mid-lines, whilst the price is above its moving averages that anyway remain all together in a tight range right below the current level, a clear indication of the ongoing absence of trend.”
Support levels: 1,236.30 1,222.30 1,214.80. Resistance levels: 1,252.70 1,262.60 1,271.80.
The early rally in the commodity was supported by a softer greenback, whilst the late decline is being blamed on risk appetite, as speculation that the US Central Bank will remain on hold for longer, is fueling demand for stocks.
Gold technical perspective
“The base metal maintains therefore the neutral stance seen lately, and in the daily chart, the price is standing barely above its 20 SMA, whilst the technical indicators head slightly lower around their mid-lines, lacking clear directional conviction,” said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term, the 4 hours chart shows that the technical indicators have turned lower, but remain above their mid-lines, whilst the price is above its moving averages that anyway remain all together in a tight range right below the current level, a clear indication of the ongoing absence of trend.”
Support levels: 1,236.30 1,222.30 1,214.80. Resistance levels: 1,252.70 1,262.60 1,271.80.