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26 Apr 2016
Gold struggle with hourly 200-SMA extends ahead of US data
Gold holds onto yesterday’s gains and now struggles to extend above hourly 200-SMA located at 1240.10 as a lack of fresh fundamental drivers and mixed sentiment keeps a lid on the prices.
Gold advances before FOMC, US advance GDP
Currently, gold rises 0.18% to 1240, testing fresh session highs posted at 1240.95 last minutes. The bullion manages to sustain at higher levels as widespread cautiousness across the financial markets ahead of key central banks’ events, especially the FOMC and BOJ, offers support to the safe-haven gold.
The Fed is widely expected to keep rates steady this month, although the main focus will remain on the accompanying statement, which may shed more light on the central bank’s rate hike prospects at its next meeting in June. On the other hand, the BOJ is speculated to ease further given the recent rise in the yen and subdued economic outlook.
Further, negative performance on most major Asian indices combined with ongoing weakness in the US dollar, keeps the sentiment underpinned surrounding the precious metal. Japan’s Nikkei drops -0.64%, Australia’s ASX 200 turns negative, while the Chinese stocks waver between gains and losses.
Looking ahead, the US durable goods orders data remains the main risk event for today, with a solid rebound in the numbers likely to weigh heavily on the gold prices.
Analysts at Nomura noted, “We expect to see only a gradual 0.4% increase (Consensus: 0.5%) in durable goods orders excluding transportation in March, after the sharp 1.3% decline in February. An expected rise in orders for nondefense aircrafts and parts in March should place upward pressure on orders for transportation goods during the month. As such, we expect top-line durable goods orders to increase by 2.2% in March (Consensus: 1.9%).
Gold Technical Levels
The metal has an immediate resistance at 1244.56 (1h 100-SMA) and 1250 (psychological levels). Meanwhile, the support stands at 1227 (previous lows) below which doors could open for 1200 (psychological levels).
Gold advances before FOMC, US advance GDP
Currently, gold rises 0.18% to 1240, testing fresh session highs posted at 1240.95 last minutes. The bullion manages to sustain at higher levels as widespread cautiousness across the financial markets ahead of key central banks’ events, especially the FOMC and BOJ, offers support to the safe-haven gold.
The Fed is widely expected to keep rates steady this month, although the main focus will remain on the accompanying statement, which may shed more light on the central bank’s rate hike prospects at its next meeting in June. On the other hand, the BOJ is speculated to ease further given the recent rise in the yen and subdued economic outlook.
Further, negative performance on most major Asian indices combined with ongoing weakness in the US dollar, keeps the sentiment underpinned surrounding the precious metal. Japan’s Nikkei drops -0.64%, Australia’s ASX 200 turns negative, while the Chinese stocks waver between gains and losses.
Looking ahead, the US durable goods orders data remains the main risk event for today, with a solid rebound in the numbers likely to weigh heavily on the gold prices.
Analysts at Nomura noted, “We expect to see only a gradual 0.4% increase (Consensus: 0.5%) in durable goods orders excluding transportation in March, after the sharp 1.3% decline in February. An expected rise in orders for nondefense aircrafts and parts in March should place upward pressure on orders for transportation goods during the month. As such, we expect top-line durable goods orders to increase by 2.2% in March (Consensus: 1.9%).
Gold Technical Levels
The metal has an immediate resistance at 1244.56 (1h 100-SMA) and 1250 (psychological levels). Meanwhile, the support stands at 1227 (previous lows) below which doors could open for 1200 (psychological levels).