The precious metal, gold, is trading with a strong bullish bias at 1,826, having violated the resistance level of $1,815The Federal Reserve closely wa
- The precious metal, gold, is trading with a strong bullish bias at 1,826, having violated the resistance level of $1,815
- The Federal Reserve closely watches the CPI Index to determine the timing for the first pandemic-era interest rate hike
- The US Dollar Index, which measures the value of the greenback against a basket of six major currencies, dropped sharply on Wednesday, all the way down to 94.91
The US Dollar Index, which measures the value of the greenback against a basket of six major currencies, dropped sharply on Wednesday, all the way down to 94.91. This was the lowest level seen by DXY since November 12. The US Dollar Index fell to its lowest level in two months, below 95, which added great support to the rising prices of the precious metal on Wednesday.
The Federal Reserve watches the CPI Index closely, to determine the timing for the first pandemic-era interest rate hike. In March 2020, the Fed dropped its interest rates to almost zero, after the outbreak of the coronavirus pandemic. The central bank has signaled that it will increase interest rates as much as three times this year, and the first hike is expected to come between March and June.
Gold (XAU/USD) – Technical Outlook
The precious metal, gold, is trading at 1,826, with a strong bullish bias, having violated the resistance level of $1,815. This level is acting as a support for gold. Further to the upside, the next resistance remains at 1,832, and a break above this could lead the gold price towards the 1,845 level.
Daily Technical Levels
Support Resistance
1,817.11 1,830.61
1,809.08 1,836.08
1,803.61 1,844.11
Pivot Point: 1,822.58On the lower side, the support is holding at around 1,820, and a break below this level could extend the selling trend until the 1,804 level. Good luck!
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