Gold Movement
Gold prices traded marginally lower against the USD in the 24 hour period ending 23:00GMT, at 1693.68 per ounce, amid persistent worries over the potential shifts in the US tax policy.
In the Asian session, at GMT0400, Gold is trading at 1692.35, marginally lower from yesterday’s close, after Goldman Sachs lowered its 2013 gold price targets.
Goldman Sachs slashed its 3-, 6- and 12-month gold price forecasts to USD1825 per ounce, USD1805 per ounce and USD1800 per ounce, respectively. The bank also introduced a $1750 forecast for 2014. The bank indicated that an improving US economy would prompt the Federal Reserve to hold off on its loose monetary policies and allow the dollar and interest rates to strengthen somewhat, which would curb demand for gold.
Gold is expected to find support at 1682.17, and a fall through could take it to the next support level of 1671.99. Gold is expected to find its first resistance at 1705.29, and a rise through could take it to the next resistance level of 1718.23.
The yellow metal is trading below its 20 Hr and 50 Hr moving averages.
