Back
8 Feb 2016
Gold revisits Friday’s high on flight to safety
FXStreet (Mumbai) - A minor wave of flight to safety triggered by the risk-off in Europe, pushed Gold back near Friday’s high of USD 1174.50 levels.
Fed not seen raising rates in 2016
The metal is being supported by the low prospects of a Fed rate hike in 2016. As per the CME data, the markets do not see another 25 basis point hike in 2016. Moreover, the risk-off also pushes rate hike probability lower.
Ahead in the day, the broader market should continue to guide the metal, since the economic calendar in Europe and US is empty.
Gold Technical Levels
The metal currently trades around USD 1172.50/Oz. The immediate resistance is seen at 1183.00 (Oct 28 high), above which prices could test 1191.57 (Oct 15 high). On the other hand, a break below 1163.80 (daily low), under which losses could be extended to 1157.22 (76.4% of Oct high-Dec low).
Fed not seen raising rates in 2016
The metal is being supported by the low prospects of a Fed rate hike in 2016. As per the CME data, the markets do not see another 25 basis point hike in 2016. Moreover, the risk-off also pushes rate hike probability lower.
Ahead in the day, the broader market should continue to guide the metal, since the economic calendar in Europe and US is empty.
Gold Technical Levels
The metal currently trades around USD 1172.50/Oz. The immediate resistance is seen at 1183.00 (Oct 28 high), above which prices could test 1191.57 (Oct 15 high). On the other hand, a break below 1163.80 (daily low), under which losses could be extended to 1157.22 (76.4% of Oct high-Dec low).