Gold firms, dollar under pressure as Fed shifts stance
Gold prices Thursday extended Wednesday afternoon’s sharp gains, in the wake of a dovish FOMC statement. A sharp drop in the U.S. dollar index to a five-month low and crude oil prices pushing above $40.00 a barrel Thursday also worked in favor of the precious metals market bulls. April Comex gold was last up $37.50 at $1,267.50 an ounce. May Comex silver was last up $0.501 at $15.72 an ounce.
Gold edged higher on Friday as the dollar hovered near its lowest in five months, under pressure from the Federal Reserve's plan to make fewer interest rate hikes than expected last year.
Spot gold rose 0.2 percent to $1,259.30 an ounce by 0038 GMT, while U.S. gold slid 0.4 percent to $1,260.40 an ounce. Spot gold close 0.4 percent lower in the last session.
Technically, April gold futures prices closed nearer the session high. Gold bulls have the firm overall near-term technical advantage. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the March high of $1,287.80. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at this week’s low of 1,226.00. First resistance is seen at today’s high of $1,271.90 and then at $1,280.70. First support is seen at today’s low of $1,255.20 and then at $1,250.00. Wyckoff’s Market Rating: 7.0
The U.S. dollar index dropped to a five-month low on Thursday while shares on Wall Street rallied to lead global equities higher as a dovish U.S. Federal Reserve emboldened investors to take on more risk.
Reference: Reuters, Kitco
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