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    Global risk aversion boosts Gold to a fresh 2016 highs Haresh Menghani

    Extending its bullish trajectory for seventh consecutive day, Gold on Thursday jumped back above $1300 level for the first time since early May. The bullion continued rising to hit a fresh 2016 high and is currently trading at the highest level since Jan. 2015.The ongoing bullish momentum got an additional boost after the Bank of Japan also left its monetary policy unchanged. Both the central banks opted to wait until the results of the upcoming UK-EU referendum on June 23 that could shake global financial markets.Moreover, a fresh bout of global risk-aversion on Thursday, dragging equity markets across the world lower, and a broadly weak greenback is also seen supporting the safe-haven appeal of the yellow metal.On Wednesday, the precious metal rose after the US Federal Reserve lowered its forecast for Fed fund rates and 2016 GDP forecast, suggesting a slower pace of monetary policy tightening in future years.Going forward, the bullion traders will now take cues from a slew of important economic releases / events from major developed economies.Technical levels to watchThe momentum seems strong enough to boost the metal towards Jan. 2015 highs resistance near $1307, above which it seems to continue to scale new heights and head towards Aug. 2014 highs resistance near $1319-20 area.On the downside, $1300 handle now becomes immediate support. Any dip below this immediate support is likely to get bought into and hence is likely to limit any further weakness below $1292-90 support.


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