Gold Movement
Gold prices traded higher by 0.47% against the USD in the 24 hour period ending 23:00GMT, at 1726.22 per ounce, as the dollar weakened after regional election results in Spain rekindled hopes that the nation could request a bailout.
Investors focus now turns to this week’s policy meeting of the Federal Reserve for its impact on the precious metal prices. While the Fed is likely to hold off from new action after announcing at its last meeting that it would buy $40 billion of mortgage-backed bonds a month until the US job market improved – a move that sent gold prices sharply higher – its remarks will still be closely watched.
In the physical markets, dealers reported light buying from Asian jewelry makers. Traders speculated that top consumer, India, may increase purchases during the upcoming Hindu festive season, seen as an auspicious time to buy gold.
In the Asian session, at GMT0300, Gold is trading at 1725.81, marginally lower from yesterday’s close.
Gold is expected to find support at 1721.49, and a fall through could take it to the next support level of 1717.17. Gold is expected to find its first resistance at 1730.23, and a rise through could take it to the next resistance level of 1734.64.
The yellow metal is showing convergence with its 20 Hr and 50 Hr moving averages.
