Gold Movement
Gold prices traded higher by 0.61% against the USD in the 24 hour period ending 23:00GMT, at 1278.30 per ounce, as traders favoured the safe-haven metal after the Fed slashed its growth-forecast on the US economy for 2014 and as the Fed Chief, Janet Yellen, hinted that the central bank is not in a hurry to raise its short-term interest rate in the near future.
In gold related news, data showed that holdings in the SPDR Gold Trust fell 0.26 tonnes for the straight day on Tuesday to a level of 782.62 tonnes. Separately, the World Gold Council (WGC) announced a meeting on 7 July in London to reform or replace London’s global price benchmark. Additionally, media reports showed that the head of a trade body in India, the second largest importer of gold, projected “a relaxation of policy on gold imports” to the nation and forecasted jewellery exports to rise by a quarter in the year to March 2015.
In the Asian session, at GMT0300, Gold is trading at 1277.20, 0.09% lower from yesterday’s close.
Gold is expected to find support at 1269.20, and a fall through could take it to the next support level of 1261.20. Gold is expected to find its first resistance at 1282.50, and a rise through could take it to the next resistance level of 1287.80.
The yellow metal is trading above its 20 Hr and 50 Hr moving averages.
