Gold Movement
Gold prices traded higher by 0.74% against the USD in the 24 hour period ending 23:00GMT, at 1676.15 per ounce, as demand for the safe haven metal increased after the US economy unexpectedly shrank in the Q4 FY2012 and following the latest Federal Reserve meeting.
The US Commerce Department reported that the nation’s gross domestic product contracted for the first time since the second quarter of 2009 in the three months ending December, shrinking by 0.1%. Additionally, the Federal Reserve announced that it was sticking with its U$85 billion monthly bond-purchasing program, and leaving interest rates near zero.
In the Asian session, at GMT0400, Gold is trading at 1680.35, 0.25% higher from yesterday’s close.
Gold is expected to find support at 1667.79, and a fall through could take it to the next support level of 1655.22. Gold is expected to find its first resistance at 1688.10, and a rise through could take it to the next resistance level of 1695.84.
The yellow metal is trading above its 20 Hr and 50 Hr moving averages.
