Gold Movement
Gold prices traded lower by 0.54% against the USD in the 24 hour period ending 23:00GMT, at 1322.01 per ounce, as pessimistic comments from two leading brokerage house weighed on the demand outlook of the commodity.
Citigroup indicated that the precious metal will average $1,250 per ounce next year, down from $1,405 in 2013, while Morgan Stanley expects the commodity to average between $1,200 and $1,350 per ounce in 2014 before heading lower.
In the Asian session, at GMT0300, Gold is trading at 1326.73, 0.36% higher from yesterday’s close, snapping a two-day decline on speculation that demand for the precious metal may strengthen before China’s Golden Week holiday as lower prices would attract buyers.
Gold is expected to find support at 1318.10, and a fall through could take it to the next support level of 1309.46. Gold is expected to find its first resistance at 1333.62, and a rise through could take it to the next resistance level of 1340.50.
The yellow metal is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
