Gold Movement
On Friday, Gold prices traded higher by 1.34% against the USD in the period ending 21:00GMT, at 1194.60 per ounce, as demand for the yellow metal rose amid reports that China, the world’s largest consumer of gold would introduce more measures to enhance growth in the economy. According to news reports this morning, the PBoC has taken steps to raise liquidity in the nation to support growth. Meanwhile, gold prices were further buoyed following increased buying by jewellers and retailers to meet wedding season demand in India.
Holdings in SPDR Gold Trust declined to the lowest level in six years on Friday.
In the Asian session, at GMT0300, the pair is trading at 1194.5, with gold trading tad lower from Friday’s close.
The pair is expected to find support at 1185.50, and a fall through could take it to the next support level of 1176.50. The pair is expected to find its first resistance at 1201.30, and a rise through could take it to the next resistance level of 1208.10.
The yellow metal is showing convergence with its 20 Hr moving average and is trading above its 50 Hr moving average.
