Gold steadies around USD 1165/Oz
New York (Mar 18) Gold prices trade steady around USD 1165/Oz after the Fed chairwoman Janet Yellen, in her press conference, said the Fed does not rule out the possibility of the interest rate hike post April meeting.
Gold: Is the bounce to be sold?
The metal rallied sharply after the Fed revised its end 2015 median interest rate forecast significantly lower. The resultant sharp decline in the US dollar helped the yellow metal rise to USD 1165 levels. The Fed also stated that it does not see a rate hike happening at the April meeting.
However, the markets were anyways not speculating on an April rate hike. Meanwhile, the rate hike post April meeting is still in place. Thus, we could see metal erase part of its gains from the current level. However, the downward revision of the median interest rate forecast could keep the metal supported.
Moreover, the movement in the USD and the reaction in the Asian and European stock markets on Friday is likely to decide further moves in the yellow metal.
Gold Technical Levels
The immediate resistance is seen at 1175, above which gains could be extended to 1190.00 levels. On the flip side, support is seen at 1157 (5-DMA) and 1142.8 levels.