Gold swings back in to green, near $ 1097

FXStreet (Mumbai) – Gold prices on Comex recovered a part of yesterday’s losses and climbed higher in Asia, largely on profit-taking ignoring FOMC-backed US dollar strength and rallying Asian equities.

Gold capped below $ 1100

Currently, gold trades 0.37% lower at 1097.30, retreating from highs reached at 1098.20. Gold edged higher this session in an effort to recover losses seen in the previous session as traders sold-off the yellow metal on Expectations that the Fed might drop some hints about the timing of the rate lift-off in its policy statement.

A widely expected, FOMC statement turned out to be a non-event and dovish, however Fed officials sounded optimistic on the US economic recovery which spurred USD rally. At the moment, the US dollar index, a virtual gauge of greenback’s strength, trades 0.13% higher at 97.35. A stronger greenback makes dollar-priced in gold more expensive to holders on other currencies and vice-versa.

Looking ahead, gold prices may be influenced by US macro data while reports that global precious metal refiner Valcambi suggested that gold imports into China may plunge as much as 40% this year due to a reduced need to back financial deals may keep the gains checked.

Gold Technical Levels

The metal has an immediate resistance at 1100 and 1105 levels. Meanwhile, support stands at 1090 below which doors could open for 1085 levels.

Gold prices on Comex recovered a part of yesterday’s losses and climbed higher in Asia, largely on profit-taking ignoring FOMC-backed US dollar strength and rallying Asian equities.

(Market News Provided by FXstreet)