Gold price edges higher to $1275, focus remains on FOMC

November 1, 2017

London (Nov 1)  Gold edged higher through the early European session on Wednesday and recovered major part of overnight losses, albeit struggled to move past $1277 supply zone.

On Tuesday, a resurgent US Dollar, supported by a duo of upbeat US economic reports, was seen exerting pressure on dollar-denominated commodities - like gold.

Heading into a busy second half of the week, featuring key central bank monetary policy meetings (FOMC & BOE) and the keenly watched US monthly jobs report (NFP), investors turned a bit cautious, which was eventually seen benefiting the precious metal's safe-haven appeal.

Meanwhile, a follow-through uptick in the US Treasury bond yields, coupled with global risk-on trade might continue to keep a lid on any additional strong up-move for the commodity, at least for the time being.

Later during the NA session, the US macro data - ADP report and ISM manufacturing PMI, might help grab some short-term trading opportunities. Investors' focus, however, would remain glued to the FOMC decision, which should provide fresh hints over the central bank's near-term monetary policy outlook and eventually provide fresh directional impetus for the non-yielding metal.

Technical levels to watch

On a sustained move beyond $1277-78 immediate hurdle could accelerate the up-move towards $1283-84 horizontal resistance before the commodity eventually darts towards its next major hurdle near the $1290-92 region.

Meanwhile, on the downside, immediate support is now pegged at $1275 level and is closely followed by support near the $1268 region. Break below the mentioned supports is likely to extend the slide towards $1260 support.


Silver Phoenix Twitter                 Silver Phoenix on Facebook