Gold traders certainly had a bit of an up and down session yesterday after the U.S. Federal Reserve sent a couple of mixed messages which made for some tricky trading conditions.
When the FOMC announced that rates were unchanged and lowered the interest paid on reserves deposited, we saw GOLD gain some ground.
However, the troubles arose when Fed Chairman Jerome Powell said low inflation may be transitory and that the previous risks that we had seen in the market had moderated. That meant there was less fear around to drive the gold bulls.
Sure enough Gold closed weak. the key levels now appear to be 1268 support to the downside.
Above us we are seeing 1280 as an important support turned resistance level. While 1288 remains strong.
Keep watching the downside here as we could be in for some more as we close out the week. Particular on another strong jobs result.
// Asia-Pacific Analyst
Rowan Crosby is a professional futures trader from Sydney, Australia. Rowan has extensive experience trading commodities, bonds and equity futures in the Asian, European and US markets. Rowan holds a Bachelor of Finance and Economics degree and is focused heavily on Investment Finance and Quantitative Analysis.