Gold Slides To Lowest Level In a Month – Outlook Cautious
Feb, 08th 13:19
Gold prices slipped lower on Thursday, reaching their lowest level in around a month as the dollar firmed amid expectations of more U.S. interest rate hikes this year.
Gold prices fell to trade at $1,311.30 a troy ounce, its worst level since January 10. It was last at $1,312.90 10:55GMT, down around 0.1%.
The move higher in the yields also came amid news that U.S. Senate leaders reached a two-year budget deal to raise government spending by almost $300 billion.
Although market participants will keep watch on weekly jobless claims out at 8:30AM ET (13:30GMT), they will also pay close attention to appearances from Federal Reserve policymakers for clues to the future path of rate hikes.
Dallas Fed president Robert Kaplan said in an interview with Bloomberg on Thursday that three more rate hikes this year was appropriate and insisted that the best way for to support the economic expansion was to continue the removal of policy accommodation.
On the technical charts, Gold is trading sideways and testing the lower band of the Bollinger bands. The market is trading between the moving averages, above the 100 day and the 200 day EMA, but below the 9 day, 20 day and 50 day EMA. The RSI is at 41.21 and the MACD is below the signal line.
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