Gold flat lined in Asia, eyes Fed

Gold's recovery from 2.5-week low halted in Asia.
Caution ahead of Fed could keep metal on the back foot.

Omkar Godbole FXStreet Contributor

Gold is trading in a sideways manner around $1,316 in Asia, having recovered from the 3.5-week low of $1,308 yesterday.

Focus on Fed

Speculation is on the rise that Fed may revise higher its dot plot to four 2018 rate hikes. However, it would only push the Fed one step closer to the ultimate endpoint (peak rate) and hence may not yield big sell-off in gold.

On the other hand, an upward revision of 2019 and 2020 rate forecasts would lift the peak rate ceiling and open doors for a big drop in the zero-yielding yellow metal.

Gold Technical Levels

A break above $1,320 (previous day's high) would open up upside towards $1,330 (March 14 high) and $1,340 (March 6 high). On the downside, breach of support at $1,310 (100-day MA) could yield a sell-off to $1,303 (March 1 low) and $1,300 (psychological level).

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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