Gold extends gains in Asia, Dec Fed rate hike bets drop
By FXStreet FXStreet (Mumbai) – The yellow metal shows some signs of strength in the early Asian trades, rebounding sharply from five-year lows and extending the post-FOMC minutes gains.
Gold trades above 1h 50-SMA
Currently, gold rises 0.53% to fresh session highs of 1074.80 recovering from a brief dip to fresh multi-year troughs post-FOMC minutes. A fresh bid-wave caught the bullion in recent dealing, taking the prices higher towards hourly 100-SMA located at 1079.06.
The demand for gold returned to markets after the FOMC minutes failed to further lift up Dec Fed rate hike bets, coming in line with the FOMC policy statement published on Oct 28. The document echoed that the Fed will assess the rate hike options next month and any decision is likely to remain data-dependent.
Following the FOMC minutes, the odds of a 25 basis hike in December dropped to 68% from 74% pre-minutes, the CME Group’s FedWatch tool showed. Gold shines in a lower interest-rate regime as it emerges as a higher yielding asset.
In the day ahead, markets will continue to digest the Fed minutes, with the focus now shifting towards the weekly jobless claims and Philly Fed manufacturing index due later today for further USD moves.
Gold Technical Levels …read more
Source:: FX Street
