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19 Nov 2014
Gold weakens maringally after Fed minutes
FXStreet (Mumbai) - Gold prices declined after the release of the Fed minutes, which revealed policymakers were concerned about the falling inflation expectations.
Gold traded 0.72% lower at USD 1189.30/Oz levels at the time of writing. The metal dropped from USD 1195 to USD 1175 and rose back again to USD 1190 levels before the release of the minutes. However, prices came under pressure post the minutes as the policy makers expressed concerns regarding falling inflation expectations in the US, while mentioning a limited impact of a slowdown in China, Japan and Europe on the Us economy. Falling inflation expectations amid a relatively resilient US economy means a less hedge demand for the yellow metal.
However, gold may regain strength if the Treasury yields weaken due to the threat of falling inflation expectations in the US.
Gold Technical Levels
Gold has an immediate support at 1174.90, under which prices can extend the fall to 1169.40 levels. Meanwhile, resistance is seen at 1193.60 and 1204.10 levels.
Gold traded 0.72% lower at USD 1189.30/Oz levels at the time of writing. The metal dropped from USD 1195 to USD 1175 and rose back again to USD 1190 levels before the release of the minutes. However, prices came under pressure post the minutes as the policy makers expressed concerns regarding falling inflation expectations in the US, while mentioning a limited impact of a slowdown in China, Japan and Europe on the Us economy. Falling inflation expectations amid a relatively resilient US economy means a less hedge demand for the yellow metal.
However, gold may regain strength if the Treasury yields weaken due to the threat of falling inflation expectations in the US.
Gold Technical Levels
Gold has an immediate support at 1174.90, under which prices can extend the fall to 1169.40 levels. Meanwhile, resistance is seen at 1193.60 and 1204.10 levels.