24 Feb 2015
Gold wavers as Yellen testifies before Senate banking
FXStreet (Mumbai) - Gold prices fell to a low of USD 1190.4 before posting a sharp rebound to USD 1202.4 levels after Fed Chairwoman Janet Yellen said Fed will change its forward guidance before raising interest rates.
Gold back at USD 1200
The yellow metal is back at USD 1200/Oz levels as the initial reaction to Yellen’s “change in forward guidance means lift-off possible at any meeting” faded away. Moreover, the initial reaction saw the USD rose sharply across the board, however, Yellen further indicated that the Fed will raise when reasonably confident on inflation, while stating that inflation could fall further in the near-term. Furthermore, the Fed chair stated that new guidance does not necessarily mean “patient” approach means liftoff unlikely for a couple of meetings. Consequently, the metal recovered to USD 1200 levels.
In the meantime, an upbeat US services PMI data and a slight decline in the consumer confidence was overshadowed by Yellen’s comments.
Gold Technical Levels
The metal currently trades at USD 1200/Oz levels. The immediate support is seen at 1190.4, under which prices could fall to the previous session’s low of 1186.1. On the flip side, a break above 1201.5 (hourly 50-MA), could push the pair higher to 1210.3 levels.
Gold back at USD 1200
The yellow metal is back at USD 1200/Oz levels as the initial reaction to Yellen’s “change in forward guidance means lift-off possible at any meeting” faded away. Moreover, the initial reaction saw the USD rose sharply across the board, however, Yellen further indicated that the Fed will raise when reasonably confident on inflation, while stating that inflation could fall further in the near-term. Furthermore, the Fed chair stated that new guidance does not necessarily mean “patient” approach means liftoff unlikely for a couple of meetings. Consequently, the metal recovered to USD 1200 levels.
In the meantime, an upbeat US services PMI data and a slight decline in the consumer confidence was overshadowed by Yellen’s comments.
Gold Technical Levels
The metal currently trades at USD 1200/Oz levels. The immediate support is seen at 1190.4, under which prices could fall to the previous session’s low of 1186.1. On the flip side, a break above 1201.5 (hourly 50-MA), could push the pair higher to 1210.3 levels.