“BUY ABOVE 29240,
TGT 29410/29500 SL 29110”
“SELL BELOW 28790, TGT 28670/29560, SL 28900”
Gold Gold
jumped almost two percent on Thursday as the dollar fell to a 17- month low
against the Japanese yen following minutes from the U.S. Federal Reserve's
latest meeting and global shares fell, rekindling investor appetite for safer
assets. Minutes from the Fed's March meeting released on Wednesday showed a
consensus by policymakers that risks from a global economic slowdown warranted
a cautious approach to raising U.S. interest rates. The metal saw its biggest
quarterly rise in nearly 30 years in the three months to March, rallying more
than 16 percent and hitting a 13-month high on speculation the Fed was not in a
hurry to normalize interest rates. It had drifted back towards the key $1,200
level in the past week after hawkish comments from several Fed officials. Gold
is sensitive to rate increases as they lift the opportunity cost of holding the
non-interest-yielding metal. The Fed should be patient and cautious about
raising short-term interest rates, but should nevertheless increase them in a
sustained way, Dallas Fed President Robert Kaplan said on Wednesday. Assets in
SPDR Gold Trust, the world's largest gold-backed exchangetraded fund, rose 0.51
percent to 819.60 tonnes on Wednesday, the first inflow in nearly two weeks.
Outlook We expect gold prices to trade positive on the back of uncertainty over
US interest rates.
RESISTANCES:
29600/29840 29350/29470 29150/29240
SUPPORTS:
28840-790 28580/28380 28270/28040
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