Gold Movement
Gold prices traded lower by 0.43% against the USD in the 24 hour period ending 23:00GMT, at 1298.60 per ounce amid subdued physical demand from China on account of a public holiday. Negative sentiment for the precious metal was also fuelled after a leading broking house projected a fall in the prices of gold over the next four quarters and added that the yellow metal was in its least preferred metal, as prices would continue their downward trend on the outlook for rising US interest rates and low inflation expectations.
Meanwhile, reports indicated holdings in the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, fell 1.80 tons to 809.18 tons.
In the Asian session, at GMT0300, Gold is trading at 1300.26, 0.13% higher from yesterday’s close.
Gold is expected to find support at 1295.94, and a fall through could take it to the next support level of 1291.63. Gold is expected to find its first resistance at 1304.37, and a rise through could take it to the next resistance level of 1308.49.
The yellow metal is trading just above its 20 Hr and 50 Hr moving averages.
