Gold trades steady ahead of US GDP data
London (Jan 30) Gold prices have steadied around USD 1264 levels as investors await the preliminary US Q4 GDP data.
Strong GDP may hurt Gold prices
Gold prices have declined since Wednesday as the Federal Reserve statement did little to alter the investor expectation that Fed is on track to raise interest rates this year. Hence, a strong GDP number could increase speculation of interest rate hike in the US, leading to fall in Gold.
The preliminary GDP is expected to show the rate of growth slowed down to 3% in Q4, compared to 5% GDP recorded in Q3 2014.
Gold Technical Levels
The immediate resistance is seen at 1265.8, above which gains could be extended to 1272.08 (hourly 50-SMA). On the flip side, the support is seen at 1261.6 and 1256 levels.