Gold prices rose to an 11-week high on Thursday after the U.S. Federal Reserve gave no clear signal on the likelihood of a March interest rate increase in its latest statement, prompting another drop in the U.S. Dollar. Bullion struck its highest level since Nov. 17 at $1,225.30 an ounce. The U.S. currency slipped to the lowest since mid-November against a basket of currencies, but gold pared gains as the dollar turned positive later in the session. Spot gold was up 0.6 percent at $1,216.10. Investors' interest in gold rose after the U.S. currency suffered its worst January in 30 years. U.S. non-farm payroll data for January will be closely watched on Friday. The report will be examined for signs that growth is strong enough to support further interest rate hikes.
On technical front, gold is expected to rise to $1,235 in near term after crossing through the key resistance of $1,220. The world's largest gold-backed exchange-traded fund, SPDR Gold Shares, reported its biggest one-day inflow in nearly four months on Wednesday, of 10.7 tonnes, showing investors’ increasing interests in gold.
Silver was down 0.3 percent at $17.46 an ounce. Technically, the white metal lingers around the highs of $17.4 with the support of the 100-day moving average despite of recent falls, showing no distinct divergence with gold. Still in the upside range, silver is expected to find resistance at the 200-day moving average of $17.90.
 

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