Gold Movement
Gold prices traded lower by 0.29% against the USD in the 24 hour period ending 23:00GMT, at 1255.30 per ounce, following an upbeat weekly jobless claims data from the US economy. However, the yellow metal pared some of its initial losses after data showed that the world’s largest economy contracted in the first quarter, for the first time in three years. Meanwhile, in a note to investors, a leading broking house projected gold prices to rise in the near term and average to $1,337.00 an ounce in the first half of 2014, amid ongoing tensions between Russia and Ukraine. However, the broker cautioned about very limited upside catalysts for gold prices, apart from the geo-political tensions.
In the Asian session, at GMT0300, Gold is trading at 1257.00, 0.14% higher from yesterday’s close.
Gold is expected to find support at 1251.73, and a fall through could take it to the next support level of 1246.47. Gold is expected to find its first resistance at 1261.43, and a rise through could take it to the next resistance level of 1265.87.
The yellow metal is trading just above its 20 Hr moving average and is showing convergence with its 50 Hr moving average.
