Gold prices on Comex extended losses in the Asian session and traded lower as traders continued to weigh the FOMC’s patient approach towards policy normalization in the US.
Currently, gold trades lower by -0.40% at 1282.10 levels, pulling away from intraday lows of 1278.90 levels hit earlier in the session. Gold prices dropped in the US last session after the Federal Reserve said the committee will be patient regarding changes to the current interest rate level. The Fed also stated that US economic is showing solid growth which dulled gold’s appeal as an alternative investment.
However, gold prices are expected to remain supported ahead of renewed buying interest from the Chinese ahead of the Lunar New Year next month and also as holdings of the largest gold-backed exchange-traded-fund, SPDR Gold Trust rose 1.3% on Tuesday.
Gold Technical Levels
The metal has an immediate resistance at 1288 and 1294 levels. Meanwhile, support stands at 1273 levels below which doors could open for 1267 levels.
Currently, gold trades lower by -0.40% at 1282.10 levels, pulling away from intraday lows of 1278.90 levels hit earlier in the session. Gold prices dropped in the US last session after the Federal Reserve said the committee will be patient regarding changes to the current interest rate level. The Fed also stated that US economic is showing solid growth which dulled gold’s appeal as an alternative investment.
However, gold prices are expected to remain supported ahead of renewed buying interest from the Chinese ahead of the Lunar New Year next month and also as holdings of the largest gold-backed exchange-traded-fund, SPDR Gold Trust rose 1.3% on Tuesday.
Gold Technical Levels
The metal has an immediate resistance at 1288 and 1294 levels. Meanwhile, support stands at 1273 levels below which doors could open for 1267 levels.
