Gold Movement
On Friday Gold prices traded higher by 1.14% against the USD in the period ending 21:00GMT, at 1307.90 per ounce, as the situation in Russia and Ukraine worsened. Over the weekend, the US released satellite images which showed that rockets have been fired from Russia into eastern Ukraine and heavy artillery for separatists has also crossed the border. Meanwhile, the Russia’s Foreign Ministry criticised the sanctions imposed by the European Union over Moscow’s role in the Ukraine crisis and alleged that the US has played a role in adding to the conflict in Ukraine through its support for the pro-Western government in Kiev.
Data released from the Hong Kong Census and Statistics Department indicated that the gold imports from Hong Kong in China fell for the fourth consecutive month to 36.4 metric tons, as compared to net imports of 52.3 metric tons in May and 100.9 metric tons a year ago. Over the weekend, a leading broker raised its price target for the yellow metal $1,200/ounce from $1,066/ounce.
In the Asian session, at GMT0300, Gold is trading at 1302.80, 0.39% lower from Friday’s close.
Gold is expected to find support at 1292.90, and a fall through could take it to the next support level of 1283.00. Gold is expected to find its first resistance at 1310.80, and a rise through could take it to the next resistance level of 1318.80.
The yellow metal is showing convergence with its 20 Hr moving average and is trading above its 50 Hr moving average.
