Gold firmer near $1,210, Fed on sight

Pablo Piovano FXStreet

The troy ounce of the precious metal has regained the critical $1,200 handle and above on Monday.

Gold focus on FOMC meeting

Bullion has managed to leave behind Friday’s multi-week lows in sub-$1,200 levels, as the persistent and renewed selling interest around the greenback has given extra legs to the USD-denominated universe.

The upside momentum in the yellow metal will remain under scrutiny later in the week, as the FOMC is expected to hike rates at its meeting on Wednesday. Currently, and according to Reuters’s Fedwatch, the probability of a 25 bp rate hike is nearly 92%, based on Fed Funds futures prices.

In addition, and from the political side, elections in the Netherlands this week and in France in late April will surely add extra volatility to the metal.

Gold key levels

As of writing Gold is gaining 0.55% at $1,207.95 and a breakout of $1,212.20 (high Mar.8) would expose $1,225.40 (high Mar.7) and then $1,230.25 (23.6% Fibo of the December-February up move). On the other hand, the next support aligns at $1,196.20 (low Mar.10) followed by $1,185.60 (low Jan.26) and finally $1,177.07 (61.8% Fibo of the December-February up move).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

AUD/USD sticks to positive bias above 0.7100; lacks bullish conviction

AUD/USD trades with a positive bias for the second straight day, holding above 0.7100 in the Asian session on Friday as softer US bond yields keep US Dollar bulls on the back foot. Furthermore, hawkish RBA Governor Bullock's comments boost rate hike bets and support the Aussie. However, the Fed's hawkish outlook, along with geopolitical uncertainties, limits USD losses and caps the pair.

USD/JPY approaches 158.00 as Japanese Yen resumes decline

USD/JPY is resuming its upside in the European session on Friday, refreshing two-week highs and nearing 158.00. The Japanese Yen extends losses, despite the Bank of Japan's (BoJ) expected rate hike to 1.25% and hawkish Governor Ueda's comments, as two surprise dissents against the rate hike weigh on it.

Gold tests $$4,400 as softer US bond yields cap USD gains

Gold scales higher for the second straight day and continues to hit new weekly highs through the first half of the European session on Friday, with bulls now awaiting a sustained move beyond the $4,400 mark before positioning for further gains. Retreating US Treasury bond yields keep the US Dollar (USD) uptrend capped ahead of Fedspeak and mid-tier US data.

Bitcoin extends recovery, Ethereum eyes $2,500, XRP holds $1.30

Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) extend their recovery, trading above $76,700, $2,400 and $1.300, respectively, on Friday. These top three cryptocurrencies now face key technical levels that could determine whether their recoveries extend further or pull back.

Why Bitcoin's over 30% rebound doesn't mean the bear market cycle is done

BTC has staged a strong recovery after falling to a yearly low of $57,800 in July, gaining nearly 33% and recording two consecutive months of gains in July and August. However, despite that rebound, Bitcoin remains around 40% below its all-time high, leaving one key question for traders: is this the start of a new bullish phase, or simply another recovery within a broader bear-market cycle?

How Japan became the World's Banker and why that era may be ending

Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.