Gold finds bids near $ 1195, re-takes $ 1200 on Powell
- Finally gives into $ 1200 barrier amid bullish economic projections, hawkish Powell.
- But stalled USD rebound helps cap the downside in the yellow metal.
Gold prices on Comex witnessed good two-way business following the FOMC decision and amid Fed President Powell’s press conference, as markets continue to gauge the future policy path of the US central bank.
The recovery in the yellow metal can be mainly attributed to the renewed selling seen in the US Treasury yields across the curve after Powell said that he doesn’t see inflation surprising to the upside while expressing some caution on the trade war front. Powell noted: “If there are widespread tariffs, a ‘more protectionist world’ will be bad for the US, global economy.
The non-interesting bearing gold will continue to track the USD dynamics while a positive tone seen on the Wall Street could keep the recovery attempts restricted.
Gold Technical Levels
Higher Side Levels: 1210 (round number), 1215.80 (Sept 21 high), 1217 (Aug 28 high).
Lower Side Levels: 1194.70 (daily low), 1190.40 (Sept 11 low), 1184.40 (mid-Aug low).