Gold Movement
Gold prices traded lower by 1.03% against the USD in the 24 hour period ending 23:00GMT, at 1698.35 per ounce, as technical selling sent the yellow metal plunging as did fears that the US could slide into a recession next year due to a political impasse concerning fiscal matters.
Meanwhile, reports emerged that the Bank of Korea has increased gold reserves by 20% in November in order to spread its portfolio risks, boosting holdings for the fourth time since June 2011 and underscoring increased demand by central banks.
In the Asian session, at GMT0400, Gold is trading at 1701.95, 0.21% higher from yesterday’s close.
Gold is expected to find support at 1690.99, and a fall through could take it to the next support level of 1680.02. Gold is expected to find its first resistance at 1713.34, and a rise through could take it to the next resistance level of 1724.72.
The yellow metal is trading between its 20 Hr and 50 Hr moving average.
