Gold Movement
Gold prices traded lower by 0.87% against the USD in the 24 hour period ending 23:00GMT, at 1711.15 per ounce, as investors opted for safe haven US Dollar, after Moody’s slapped credit-rating downgrades on the Spanish regions of Andalucia, Extremadura, Castilla-La Mancha, Catalonia and Murcia, which sent the Euro and other higher-yielding currencies falling in a risk-off trading session. The news added to already growing uncertainty as to whether or not Spain will request a bailout. Meanwhile in the US, weak third-quarter earnings sent investors chasing the safe-haven greenback, sending investors ditching gold in the process.
However, in the Asian session, at GMT0300, Gold is trading at 1711.30, marginally higher from yesterday’s close, erasing earlier losses sustained from a Moody’s decision to downgrade ratings held by regional Spanish governments on top of soft corporate earnings in the US.
Additionally, expectations for no change to US monetary policy allowed the precious metal to shrug off otherwise bearish pressures.
Gold is expected to find support at 1701.13, and a fall through could take it to the next support level of 1690.96. Gold is expected to find its first resistance at 1724.31, and a rise through could take it to the next resistance level of 1737.33.
The yellow metal is trading in between its 20 Hr and 50 Hr moving averages.
