Gold climbed to six-weeks high after a dovish FOMC statement that included a cautious US inflation outlook. The precious metal extended gains on Thursday
Gold climbed to six-weeks high after a dovish FOMC statement that included a cautious US inflation outlook. The precious metal extended gains on Thursday morning to trade at 1262.25, +1.02%.
According to the statement from the FED, interest rates are likely to remain low for a while as the weakness in inflation weigh on US economic growth.
Technical Outlook
Gold prices clearly sustained above $1240 that was the previous support. It seems as a rally towards $1275-$1300 levels is inevitable. A good bullish signal is the 100/50 day moving average cross as seen in the chart.
Gold Daily Chart
Gold prices next target should be between $1275-1283 while support holds at $1257.
