8 April 2016


“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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