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Gold gains along with Stocks

FXStreet (Mumbai) - Gold jumped to USD 1215/Oz while the US stocks gained more than 1% after the US Federal Reserve (Fed) minutes talked down fears of an early interest rate hike in the US.

Just prior to the release of the minutes, Gold has tumbled to USD 1206/Oz levels, as the markets were anticipating a hawkish policy tone. The yellow metal also received support from the decline in the US ten-year and the two-year treasury yields.

Post release of the minutes, the DJIA has gained 1.24% to trade at 16927.5 while the S&P futures have gained 1.29% to trade at 1952.95. The rising stocks are likely to cap gains in the Yellow metal.

Moreover, the rebound in Gold was largely driven by the Fed policymakers’ concerns regarding the strength in the US Dollar.

Gold technical levels

Gold has a strong resistance of 1220.6 while the support is located at 1205. The hourly indicators are pointing to a further upside in Gold prices.

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