Gold Movement
Gold prices traded higher by 0.21% against the USD in the 24 hour period ending 23:00GMT, at 1,787.90 per ounce, as investors remained nervous over the euro zone’s sovereign-debt crisis and weak prospects for global growth.
Gold further gained after, Venezuela’s President, Hugo Chavez, stated yesterday that he is readying a decree to nationalize the country’s gold industry. He further stated that the value of gold keeps rising and Venezuela “can’t allow it to continue to be taken away”.
In the Asian session at 3:00GMT, gold is trading at USD 1,791.22 per ounce, 0.19% higher from 23:00GMT.
The pair is expected to find its first short term resistance at 1,798.03, with the next resistance at 1,804.85. The pair is expected to find support at 1,781.07 and subsequently at 1,770.93.
The yellow metal is showing convergence with its 20 Hr moving average and is trading just above its 50 Hr moving average.
