Gold futures fall in electronic trading after Fed raises interest rates
Gold futures moved lower in electronic trading late Wednesday from their settlement level after the U.S. Federal Reserve announced a one-quarter point increase in interest rates. The ICE U.S. Dollar Index DXY, +0.41% was trading 0.4% higher after the decision, pressuring dollar-denominated prices for the yellow metal. December gold GCZ6, -2.30% was last at $1,159.60 an ounce in electronic trading, down from the $1,163.70 settlement, which had marked a rebound from Tuesday's finish at a roughly 10-month low.
In this morning, gold hit 10 month-low around $1,134 on Fed signaled a faster pace of increases next year.
Spot gold edged 0.4 percent lower to $1,139.54 an ounce by 0108 GMT. The bullion touched a new low of 1,134.71 an ounce, its lowest since Feb. 3. The yellow metal fell over one percent in the prior session.
Holdings of the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.80 percent to 849.44 tonnes on Wednesday. [GOL/ETF]
Technically, February gold futures bears have the solid overall near-term technical advantage. There are still no early clues of a market bottom. Prices are in a six-month-old downtrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,200.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,125.00. First resistance is seen at this week’s high of $1,167.90 and then at $1,175.00. First support is seen at today’s low of $1,145.70 and then at $1,140.00. Wyckoff's Market Rating: 2.0
Reference: Market Watch, Kitco, Reuters
Thai
Eng