Commodities
Home›Commodities›Precious Metals›Gold holds below its 20-day EMA near $4,110 as Fed hik…
Gold holds below its 20-day EMA near $4,110 as Fed hike odds rise
The CME FedWatch tool puts the odds of at least one Fed rate increase this year at 83.4%, up from about 78% a week ago, a backdrop that is weighing on bullion.
Gold was up about 0.8% to trade near $4,110 during European hours, but it remained capped by a technical level, holding below the 20-day exponential moving average around $4,153.16, FXStreet said.
FXStreet linked the move to a weaker US dollar and expectations that the Federal Reserve could be more hawkish, noting the US Dollar Index was about 0.1% lower near 100.95. It also cited CME FedWatch data showing the probability of a Fed rate increase at least once this year rising to 83.4% from nearly 78% a week earlier.
The precious metal’s outlook is also being influenced by renewed Middle East tensions and a bounce in oil prices, FXStreet added. Investors are concerned that prolonged hostilities could last longer, with US strikes targeting infrastructure in Iran mentioned in the report.
On the technical front, FXStreet said a sustained break above the 20-day EMA near $4,153.16 would be needed to ease downside pressure and potentially open a move toward about $4,200, while support risks include a decline to the October 28 low at $3,886.62 if price falls below the June low at $3,941.76.
Latest closeGold $4,023.80 ▼1.2%|Dollar index 101.39 ▼0.1%