Gold wavers as U.S. rate hike in June remains a possibility.
Gold eased on Thursday, after the Federal Reserve kept the door open for an interest rate hike in June, although it indicated it was in no hurry to take such a step.
Spot gold XAU= had eased 0.1 percent to $1,244.50 an ounce by 0043 GMT. The metal has gained about 1 percent in the last three sessions.
Gold rose as far as $1,250.09 on Wednesday, but pared gains after the Fed statement.
That statement largely mirrored the one issued after the Fed's last policy meeting in March, with the U.S. central bank's rate-setting committee describing an improving labour market but acknowledging that economic growth seemed to have slowed.
It also said it was closely watching inflation and noted that global economic headwinds remained on its radar, though it made no mention of the risks they posed, as it had last month.
Gold has rallied 17 percent this year on expectations that the Fed will not raise rates aggressively this year due to global economic risks. The U.S. central bank raised rates in December for the first time in nearly a decade.
Technically, June gold futures bulls have the 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 April high of $1,272.40. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,225.00. First resistance is seen at $1,260.00 and then at $1,264.70. First support is seen at today’s low of $1,245.70 and then at $1,240.00. Wyckoff’s Market Rating: 6.5
Reference: Reuters, Kitco
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