Gold drifted lower after the Federal Reserve held rates steady and signaled it continued to assess data on household spending with near-term attention on the Bank of Japan's review of policy. BOJ keeps deposit rate at -0.1%, keeps asset purchase target unchanged at Y80 trillion per year, BOJ says likely to achieve 2% inflation during FY2017, BOJ pushes back forecast date for hitting 2% inflation, Core CPI likely 0.5% in this FY vs prev forecast 0.8%,Core CPI likely 1.7% in FY2017 vs prev forecast 1.8%
The Federal Reserve's policy making Federal Open Market Committee left short term interest rate unchanged Wednesday as expected, but tweaked its policy statement, possibly preparing financial markets for another modest rate hike in coming months.
The FOMC, which started raising the federal funds rate from near zero in mid-December, left the funds rate in a 25 to 50 basis point target range, on a 9-1 vote, as Kansas City Federal Reserve Bank President Esther George dissented in favor of an immediate rate hike for the second straight meeting.
Still, the tone was partly downbeat in the statement.
Overnight, Gold ticked up on Wednesday, extending gains from the previous two sessions, as investors traded cautiously ahead of the release of the Federal Reserve's monetary policy statement.
In December, the FOMC lifted the Federal Funds Rate by 25 basis points, abandoning a seven-year zero interest rate policy by approving its first rate hike in nearly a decade. While the FOMC anticipated raising rates as much as four times this year in its December outlook, the U.S. central bank lowered its forecast to as few as two rate hikes in March, amid slowing global economic conditions.
Technical outlook
Gold
Support at 29240 and Resistance at 29450---29720
Close below 29240 will take to 29050---28900 and then to 28650 mark. More and more downside panic will see only weekly close below 28650 mark else it could test its resistance level of 29450---29720 again
Trade with levels only... Anything seems will update via App
Silver
Support at 40150 and Resistance at 40900
Decisive break and sustain + close below 40150 will take to 39400. Three consecutive closes + weekly close above 39400 will see further downside panic till 38500---37800 mark in days to come
Else it could test its resistance level of 40900 again
40900---41500 act as major hurdle
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