Gold Movement
Gold prices rallied 3.27% against the USD in the 24 hour period ending 23:00GMT, at 1320.10 per ounce, as traders continued to fret over lingering geo-political turmoil in Iraq and over the US economic growth-outlook. Yesterday, the US President, Barack Obama, signalled that the US would send around 300 US military advisers to assist Iraq in its battle against the Sunni insurgents while highlighting his nation’s willingness to carry out a “targeted and precise military action” in Iraq if required. Additionally, late Wednesday, the US Fed, at the conclusion of its two-day policy meeting in June, slashed its growth-forecast on the US economy for 2014 and hinted that it might delay its process of hiking interest rates in the economy.
In other gold related news, China Gold Association President, Xin Song projected private sector gold demand in China, the world’s second largest consumer of gold, to remain flat to slightly lower this year, because of concerns about further weakness in the gold price.
In the Asian session, at GMT0300, Gold is trading at 1312.80, 0.55% lower from yesterday’s close.
Gold is expected to find support at 1285.17, and a fall through could take it to the next support level of 1257.53. Gold is expected to find its first resistance at 1331.47, and a rise through could take it to the next resistance level of 1350.13.
The yellow metal is trading above its 20 Hr and 50 Hr moving averages.
