Gold Movement
Gold prices traded higher by 2.05% against the USD in the 24 hour period ending 23:00GMT, at 1316.22 per ounce, as investors took refuge in the safe-haven metal amid a US government shutdown. Gold prices also received some support as the US Dollar lost ground against major counterparts after a report on the US private sector employment registered a lacklustre growth in the month of September, adding to the signs that the Fed would continue with its monthly asset purchase programme for a longer period of time.
Moreover, the President of the Federal Reserve Bank of Boston, Eric Rosengren, yesterday indicated that the Federal Reserve should be ready to provide further support to growth if the US economy falls short of forecast.
In the Asian session, at GMT0300, Gold is trading at 1312.66, 0.27% lower from yesterday’s close.
Gold is expected to find support at 1291.22, and a fall through could take it to the next support level of 1269.79. Gold is expected to find its first resistance at 1329.05, and a rise through could take it to the next resistance level of 1345.45.
The yellow metal is trading above its 20 Hr and 50 Hr moving averages.
