Gold price awaits fresh triggers

London (Apr 28)  Gold prices hover around USD 1200-1203/Oz levels as investors await the consumer confidence data in the US due today and the Federal Reserve policy statement due for release tomorrow.

Dead flat ahead of Fed statement

Gold is witnessing consolidation a day ahead of the FOMC policy statement, after having rallied sharply in the previous session. Moreover, the US dollar has been sold today as investors are convinced that the Fed would delay the interest rate hike to end of the current year or early next year as opposed to the earlier expectation of the mid-year rate hike. Consequently, the USD index slipped to 96.51, despite which Gold remains stuck in the narrow range of USD 1200-1203.

In the day ahead, the US consumer confidence number could trigger big moves in Gold, especially if the confidence index drops.

Gold Technical Levels

The immediate resistance is seen at 1209.93 (200-DMA), above which gains could be extended to 1215.18 (100-DMA). On the flip side, a break below 1200.00 could drive the metal lower to its 10-DMA at 1195.09.

Source: FXstreet