Gold breaks critical barrier
|As we wrote in our last report the gold price would benefit on the back of a dovish speech from the US Federal Reserve and has now broken through the critical resistance level of $1,260, hitting a 6 week high which as we predicted has now become the new support level over the last 2 trading sessions.
With the possibility that the Fed won’t deliver any more rate hikes this year, the precious metal looks set to benefit for the foreseeable future unless some super economic data from the US is released to the market which may put an interest rate hike back on the table.
Gold will probably test this support level over the next few trading sessions before continuing to climb towards the next resistance level of $1,265, which was formally a support level 2 months ago.
Interested in Gold technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.