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16 Mar 2015
Gold at fresh highs above USD 1160
FXStreet (Mumbai) - Gold prices on Comex rebounded sharply in the Asian session, largely on a weaker US dollar and muted global equities, as markets now gear up for FOMC meeting in the week ahead.
Gold supported amid USD weakness
Currently, gold trades higher by 0.55% at fresh session highs reached at 1160.30. Gold prices rebounded as revival in the Asian physical demand pushed the prices higher. Moreover, a retreat in DXY from multi-year peaks on profit-taking also added to the gains in the yellow metal.
Dollar-priced commodities always react positively when the US currency weakens, as it makes them cheaper in other currencies and therefore more attractive to foreign traders.
However, the upside in gold prices may remain contained as the US dollar is likely to resume its upward momentum amid growing expectations for higher interest rates in the US before the Fed’s meeting later this Wednesday.
Gold Technical Levels
The metal has an immediate resistance at 1165 and 1170 levels. Meanwhile, support stands at 1152.80 (Today’s low) levels below which doors could open for 1146.50 (March 11 Low) levels.
Gold supported amid USD weakness
Currently, gold trades higher by 0.55% at fresh session highs reached at 1160.30. Gold prices rebounded as revival in the Asian physical demand pushed the prices higher. Moreover, a retreat in DXY from multi-year peaks on profit-taking also added to the gains in the yellow metal.
Dollar-priced commodities always react positively when the US currency weakens, as it makes them cheaper in other currencies and therefore more attractive to foreign traders.
However, the upside in gold prices may remain contained as the US dollar is likely to resume its upward momentum amid growing expectations for higher interest rates in the US before the Fed’s meeting later this Wednesday.
Gold Technical Levels
The metal has an immediate resistance at 1165 and 1170 levels. Meanwhile, support stands at 1152.80 (Today’s low) levels below which doors could open for 1146.50 (March 11 Low) levels.