Gold Movement
Gold prices traded higher by 2.92% against the USD in the 24 hour period ending 23:00GMT, at 1318.08 per ounce, as a weaker US Dollar bolstered the demand outlook of the dollar-denominated commodity. The US Dollar gave up ground against major counterparts after two eminent Fed officials stated that the Fed should not taper its asset-purchase programme at it October policy meeting and that the central bank should continue with the stimulus package for a longer time to support recovery in the US jobs markets.
In the Asian session, at GMT0300, Gold is trading at 1317.82, tad lower from yesterday’s close.
Gold is expected to find support at 1286.76, and a fall through could take it to the next support level of 1255.71. Gold is expected to find its first resistance at 1336.71, and a rise through could take it to the next resistance level of 1355.61.
The yellow metal is showing convergence with its 20 Hr moving average and is trading above its 50 Hr moving average.
