Gold trades below 50-week average

Omkar Godbole FXStreet Contributor

FXStreet (Mumbai) - Gold prices continue to trade below 50-week average located at USD 1266.60, after having declined below the same in the previous session.

Investors await US GDP

The yellow metal has shed almost USD 40/Oz since Wednesday as the Federal Reserve statement sounded optimistic on US economy, while mentioning a further decline in inflation in the near-term. Moreover, the investors continue to believe the Fed is on track to raise interest rates this year.

The US preliminary US Q4 GDP due for release today may support Gold as growth rate is expected to have slowed down to 3.0% from the previous quarter’s 5% growth rate.

Gold Technical Levels

At the moment, Gold is up 0.53% at USD 1262.40/Oz levels. The immediate resistance is seen at 1266.60 (50-WMA), above which gains could be extended to 1272.1 (Jan. 27 low). On the flip side, support is seen at 1255.1 (Oct. 21st high) and 1246.59 (200-WMA) levels.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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