Gold takes a breather, hovers around 50-DMA

Gold is having a breather, trading marginally lower on the day around its daily 50 moving average level of $1132.50/Oz.

Fed not in a rush

The yellow metal spiked in the NY session as US dollar dropped like a rock after Fed key rates on hold and suggested it is not in hurry to raise rates. However, the dot chart did suggest one rate hike in December and two more rate hikes in 2017.

However, this is far cry from what Fed said in December 2015 – could move rates four times in 2016. Meanwhile, BOJ’s move to another uncharted territory - yield curve control – is also adding to the bid tone around the metal.

Gold Technical Levels

A break above $1337 (previous day’s high) would open doors for $1342 (Aug 26 high) and $1352 (Sep 6 high). On the lower side, breach of support at $1328 (Sep 15 high) would expose confluence of 5-DMA and 10-DMA support at $1321 levels.