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29 Jan 2016
Gold ticked higher ahead of US GDP release
FXStreet (Mumbai) - Gold prices strengthened ahead of the US GDP as investors brace up for a sharper slowdown in the economy in the fourth quarter.
Eyes 50% Fib level
Prices neared 1118.85 (50% of Oct high-Dec low) before trimming gains slightly to trade around USD 1116/Oz levels. The US data due in a few minutes is expected to show the economic growth cooled in the last quarter of 2015. The core PCE, which does not include volatile energy and food prices, is also expected to show a drop in inflation.
The data could move the metal significantly if the markets make a significant adjustment to the Fed rate hike bets.
Gold Technical Levels
The immediate resistance is seen at 1118.85 (50% of Oct high – Dec low), above which prices could rise to 1128.12 (Jan 27 high). On the other hand, a break below 1113.15 (Jan 8 high) would open doors for a drop to 1105.24 (100-DMA).
Eyes 50% Fib level
Prices neared 1118.85 (50% of Oct high-Dec low) before trimming gains slightly to trade around USD 1116/Oz levels. The US data due in a few minutes is expected to show the economic growth cooled in the last quarter of 2015. The core PCE, which does not include volatile energy and food prices, is also expected to show a drop in inflation.
The data could move the metal significantly if the markets make a significant adjustment to the Fed rate hike bets.
Gold Technical Levels
The immediate resistance is seen at 1118.85 (50% of Oct high – Dec low), above which prices could rise to 1128.12 (Jan 27 high). On the other hand, a break below 1113.15 (Jan 8 high) would open doors for a drop to 1105.24 (100-DMA).