OctaFX | OctaFX Forex Broker
Open trading account
Back

Gold revisits daily highs after US data

FXStreet (Mumbai) - A dismal US advance retail sales report saw broad based USD weakness push gold back to its daily high of USD 1177/Oz levels ahead of the US opening bell.

Gold supported by drop in Fed rate hike bets

The drop in the Fed rate hike bets, represented by the two-year treasury yields bodes well for the yellow metal. Moreover, rate hike bets have been on a steady drop since the Sep 17 Fed meeting. A horrible September month non-farm payrolls report pushed rate hike bets out to March 2016.

After the retail sales figure, the rate hike bets may have been pushed further out in 2016. Ahead in the day, gold could extend gains in case the Wall Street reads drop in rate hike bets as a negative sign and turns risk averse.

Gold Technical Levels

The metal now trades around USD 1174/Oz. The immediate resistance is located at 1176 (daily high), above which the prices could test 1200 levels. A break higher would expose 1232.27 (May 18 high). On the downside, a break below 1152.24 (hourly 50-MA) would expose 1141.38 (100-DMA) and 1132.90 (Nov 2014 low).

RBA may be compelled to deliver another rate cut by next month – TDS

Research Team at TDS, note that as Westpac, Australia’s second-largest mortgage lender, lifted owner-occupied mortgage lending rates by 20 bps, it has led to speculation that the RBA may be compelled to deliver another rate cut as soon as next month.
Read more Previous

Fed rate hike bets dropped after US retail sales report

The probability of a 25 basis points rate dropped across the board after the US retail sales report missed expectations on all fronts.
Read more Next
Start livechat