Gold stays in red below $1230 as dollar gathers strength ahead of Fed

Although the greenback suffered losses against its rivals following the midterm elections in the U.S., stock markets' positive reaction suggested that  |  08/11/2018 18:22
  • US Dollar Index recovers to mid-96s in the NA session.
  • The U.S. T-bond yields support the greenback.
  • The Fed is not expected to deliver any surprises in the rate statement.

Although the greenback suffered losses against its rivals following the midterm elections in the U.S., stock markets' positive reaction suggested that the market sentiment actually improved to make it difficult for traditional safe-havens such as the precious metal to find demand. After closing the previous three days with modest losses, the XAU/USD pair fell toward the $1220 area on Thursday and was last seen trading around $1225, where it was losing $2 on the day.

In the absence of significant macroeconomic data releases, the greenback started to recover its losses and received an additional boost from rising Treasury bond yields in the NA session. As markets are getting ready for the FOMC to announce its monetary policy decisions, the US Dollar Index is up 0.3% on the day at 96.45. Previewing the event, “Given the Fed raised interest rates at the last meeting in September, today’s FOMC announcement will see a “no change” outcome, but the tone of the accompanying press release will point strongly to a December rate move,” ING analysts said.

FOMC Preview: What 10 major banks are expecting from November meeting?

Earlier in the day, the only data from the U.S. showed that the weekly initial jobless claims came in at 214K for the week ending November 2 and met the market forecast.

Technical levels to consider

The initial support for the pair aligns at $1220 (daily low) ahead of $1212 (50-DMA/Oct. 31 low) and $1200 (psychological level). On the upside, resistances are located at $1227 (daily high), $1236 (Nov. 7 high) and $1243 (Oct. 26 high).

 

 

Share

Popular News

Show More Popular News

Sentiment

Open a Demo Account Open A Live Account

Losses can exceed deposits

RISK WARNING

The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

  • ForexF
  • IndicesI
  • CommoditiesC
        Back

        Login to Market Insight Account

        Your Market Insight account gives you access to the tools that we offer our customers including our
        Technical Studies & Sentiment for your accounts.

        Forgot Password?

        Don't you have a Market Insight account? With a few easy steps you can easily register to Market Insight

        Create a Market Insight's Account

        Your Market Insight account gives you access to the tools that we offer our customers including our Technical Studies & Sentiment for your accounts.

        register_ty

        Thank you!

        Welcome to Market Insight family!

        You have succesfully completed the registration.
        We will send you an e-mail to give you some
        instructions and our Terms and Conditions!
        Our account representatives will be contacting you as
        soon as possible. If you have any further questions
        please do not hesitate to mail us via info@marketinsight.com