Gold prices eased in Asia on Thursday with
the pace of future Federal Reserve rate hikes now the focus after chief Janet
Yellen suggested a "gradual path forward. Overnight, the Federal
Reserve, as expected, voted to raise the target range of its benchmark Federal
Funds Rate on Wednesday, ending a zero interest rate policy implemented by the
U.S. central bank shortly after the Financial Crisis aimed at rescuing the
world's largest economy from arguably its biggest catastrophe in more than 70
years. In a unanimous decision, the Federal Open Market Committee (FOMC),
lifted the Fed Funds Rate by 25 basis points to a range between 0.25 and 0.50%.
Before Wednesday's decision, the FOMC had held short-term interest rates at
near zero levels for 56 consecutive meetings, a streak which dated back to
December, 2008. The Federal Funds Rate is the rate offered by institutions on
overnight, inter bank loans held at the Fed. A rate-hike is widely viewed
as bearish for gold, which is not attached to interest rates or dividends and
struggles to compete with high-yield bearing assets. Throughout the year,
major fluctuations in gold have been linked with hints from the Fed on the
timing of a rate hike. On March 19, gold surged 1.54%, a day after dovish
comments from Fed chair Janet Yellen at the FOMC's March monetary policy
meeting. While the FOMC removed patience language from its monetary policy
statement at the time, Yellen added at a press conference that a rate hike was
not imminent at the FOMC's next meeting in April.
Then, on June 18, the precious metal soared
more than 2.1% after the FOMC declined to issue explicit wording on the timing
of lift-off, delaying a hike even further. By the same token, gold plummeted by
more than 1.5% after a robust U.S. jobs report for October paved the way for
the Fed to raise rates.
Gold
Support at 25120---24880 and Resistance
at 25530---25600
Below 25280.... will see panic till
25180---25120. Close below 25120 will see further panic till 24970---24880
mark. More and more panic will see only weekly close below 24800 mark else it
could test its resistance level of 25530 again
More and more power will see only close above
25600 mark
On Comex division, Gold has support at $1040
and resistance at 1085---1110. Upper side still seems limited and will expect
sharp downside move in it. Any sharp rise will be selling opportunity in
it.
Anything seems will update
Silver
Below 34050.... will see panic till
33500---33200. Three consecutive closes + weekly close below 33000 will see
free fall in Silver till ???
Stop loss 34500
Upper side seems limited in Silver too but
trade safely with levels only.
More will be update soon only on our Android App.
