Gold keeps gains post-BOJ, trades above $1200/Oz

The Bank of Japan (BOJ) held interest rates unchanged as widely expected, but extended the debt buying loan program by s year.

Gold, which traded on the front foot ahead of the BOJ decision, held on to gains and clocked a fresh session high of $1202.50/Oz.

The speculation was rife that the BOJ may talk about the QE Taper given the heightened risk of the policy coming under fire from US Present Trump.

However, the policy statement does not talk about Taper and stressed the necessity to maintain the QE program in order to achieve 2% inflation target.

Consequently, gold latched-on to gains as the yellow metal loves balance sheet expansion by the major central banks except the Fed.

Gold Technical Levels

Above $1200 (psychological level) the resistance is lined up at $1207 (Jan 12 high) and at $1220 (Jan 24 high). On the other hand, a breakdown of support at $1193.60 (session low) could yield a sell-off to $1180.74 (Jan 27 low) and to $1174 (50-DMA).