Gold rises in the face of growing risk aversion

FXStreet – The gold price seems to be for investors slowly come back to an attractive level to record. The precious metal climbed in the American business in the vicinity of session highs at 1.225 to the Dollar.

A the US Dollar a little weaker ambient sound offered on Dollar-denominated commodities support and so was able to recover the precious metal from the lowest level since mid-March, which had reached yesterday.

In addition, the international financial switched markets in Risk-Off mode due to the surprising dismissal of FBI Director James Comey. This resulted in a decline in Yields in the United States, and a negative opening for the US stock markets. This had increased the demand for traditional safe havens such as Gold.

Price drivers remain, however, the growing expectations of a rate hike by the Federal Reserve at the June meeting. According to CME FedWatch Tool, the probability of such a step is almost 90 percent. This is likely to cap the upside for the yellow metal.

The investors will receive on Wednesday, new evidence on the monetary policy of the Central Bank, as soon as the Fed has held-in-chief of Boston Eric Rosengren in his speech.

Technical Levels

The next Resistances lie at 1.225, 1.229/30, 1.236, and 1.240/42. Supports can be found hinengen at 1.220, 1.215/14, 1,210 and 1.205.

** FXStreet News Editorial, FXStreet**

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