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7 Jan 2015
Gold uninspired by Fed minutes
FXStreet (Mumbai) - Gold prices are trading largely unchanged after the December Federal Reserve (Fed) policy minutes released failed to provide any major surprises on the interest rate front.
The yellow metal remains unchanged around USD 1212/Oz levels; down 0.545 for the day. The minuets revealed the Fed probably would not raise rates until April. At the same time, minutes made it clear that policy makers may consider raising rates with core inflation near current levels, while stating that lower energy prices and a strong US dollar would keep inflation below its target of 2%. Thus, no clear cut indication has come through from the minutes with regards to interest rates.
However, the Fed minutes did not sound concerned regarding the strength in the US dollar, which could cap gains in the yellow metal.
Gold Technical Levels
The immediate resistance is seen at 1218.30, above which prices could test 1222.80 levels. Meanwhile, support is seen at 1209.20 and 1202.46 (100-DMA) levels.
The yellow metal remains unchanged around USD 1212/Oz levels; down 0.545 for the day. The minuets revealed the Fed probably would not raise rates until April. At the same time, minutes made it clear that policy makers may consider raising rates with core inflation near current levels, while stating that lower energy prices and a strong US dollar would keep inflation below its target of 2%. Thus, no clear cut indication has come through from the minutes with regards to interest rates.
However, the Fed minutes did not sound concerned regarding the strength in the US dollar, which could cap gains in the yellow metal.
Gold Technical Levels
The immediate resistance is seen at 1218.30, above which prices could test 1222.80 levels. Meanwhile, support is seen at 1209.20 and 1202.46 (100-DMA) levels.