Gold nursed losses on Wednesday, holding below a 15-month high as the dollar firmed after two Federal Reserve officials talked up U.S. interest rate hikes this year.
Spot gold XAU= was little changed at $1,285.19 an ounce by 0033 GMT, after dropping 0.4 percent in the previous session.
U.S. gold GCcv1 eased 0.4 percent to $1,287.20, falling for a second straight session after a six-day rally.
The United States could see two further interest rate rises this year, Atlanta Fed President Dennis Lockhart said on Tuesday.
San Francisco Fed President John Williams said Tuesday that he would support an interest-rate hike in June as long as he sees continued progress on the economy, inflation and jobs.
The gold market saw some modest profit-taking pressure kick in from the shorter-term futures traders at late-morning Tuesday, after June Comex gold hit a 15-month high of $1,306.00 Monday. The U.S. dollar index also saw a corrective bounce today, after notching an eight-month low overnight. The firmer greenback today and weaker crude oil prices were also negative outside markets for the precious metals on this day. June Comex gold was last down $6.50 at $1,289.30 an ounce. July Comex silver was last down $0.267 at $17.415 an ounce.
Technically, June gold futures prices closed nearer the session low today. The gold bulls still have the solid overall near-term technical advantage. Prices are in a five-week-old uptrend on the daily bar chart. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid longer-term technical resistance at $1,307.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,250.00. First resistance is seen at $1,300.00 and then at this week’s high of $1,306.00. First support is seen at today’s low of $1,284.00 and then at $1,273.00. Wyckoff’s Market Rating: 7.5
Reference: Reuters, Kitco
Thai
Eng