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15 May 2015
Gold dips on profit taking
FXStreet (Mumbai) - Gold prices retreated in Asia as investors took profits after the metal rallied more than USD 40 in the last three trading sessions.
Focus on Fed rate hike
Investors remain focused on the effect of the recent weakness in the US data on the timing of the interest rate hike in the US. Markets do not expect a rate hike happening before end 2015, however, the September rate hike is also not off the table as of now. Meanwhile, the sell off in the bond markets, coupled with the fall in the major equity markets has pushed investors into safe haven assets like Gold.
The metal could see further profit booking in case the USD index witnesses correction ahead of the weekend. A positive action in the major European equities could further pressurize the metal.
Gold Technical Levels
The metal currently trades at USD 1218.6/Oz. The immediate support is seen at 1215, followed by another support at 1207.00. On the other hand, a break above 1220.00, could see the metal re-test 1225 levels.
Focus on Fed rate hike
Investors remain focused on the effect of the recent weakness in the US data on the timing of the interest rate hike in the US. Markets do not expect a rate hike happening before end 2015, however, the September rate hike is also not off the table as of now. Meanwhile, the sell off in the bond markets, coupled with the fall in the major equity markets has pushed investors into safe haven assets like Gold.
The metal could see further profit booking in case the USD index witnesses correction ahead of the weekend. A positive action in the major European equities could further pressurize the metal.
Gold Technical Levels
The metal currently trades at USD 1218.6/Oz. The immediate support is seen at 1215, followed by another support at 1207.00. On the other hand, a break above 1220.00, could see the metal re-test 1225 levels.