Gold Movement
Gold prices traded higher by 0.23% against the USD in the 24 hour period ending 23:00GMT, at 1252.25 per ounce.
The US Dollar lost momentum, after the Atlanta Fed President, Dennis Lockhart, emphasised that the labour market in the US has not yet recovered fully and that there remains disturbing signs of disinflation in the economy. However, he cautiously endorsed further cuts to the stimulus program, if the economy grows at the 2.5-3% this year.
In the Asian session, at GMT0400, Gold is trading at 1251.78, marginally lower from yesterday’s close.
Gold is expected to find support at 1244.74, and a fall through could take it to the next support level of 1237.70. Gold is expected to find its first resistance at 1257.91, and a rise through could take it to the next resistance level of 1264.04.
The yellow metal is showing convergence with its 20 Hr moving average and is trading above its 50 Hr moving average.
