Gold Movement
Gold prices traded lower by 0.20% against the USD in the 24 hour period ending 23:00GMT, at 1242.42 per ounce, hurt by a strong dollar.
The US Dollar was buoyed by a better-than-expected US manufacturing report, which indicated that the New York Fed manufacturing activity surged to its highest level, since May 2012. Additionally, the Fed’s Beige Book reported that the world’s largest economy continues to expand at a moderate pace. Moreover, the World Bank yesterday lifted the outlook for the global economy. All these factors strengthened the case for the Federal Reserve to stay firm on its tapering plans, hurting the appeal of the yellow metal.
In the Asian session, at GMT0400, Gold is trading at 1241.34, 0.09% lower from yesterday’s close.
Gold is expected to find support at 1235.84, and a fall through could take it to the next support level of 1230.33. Gold is expected to find its first resistance at 1245.39, and a rise through could take it to the next resistance level of 1249.43.
The yellow metal is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
