Gold Movement
Gold prices traded lower by 0.55% against the USD in the 24 hour period ending 23:00GMT, at 1306.89 per ounce, as a downbeat rise in the US consumer inflation data for August, weighed on the precious metal’s appeal as a hedge against inflation. Data showed that US consumer price index rose just 1.5% (YoY) in August, defying market expectation for a rise to 1.6% and compared to a 2.0% rise seen in the previous month.
In the Asian session, at GMT0300, Gold is trading at 1296.73, 0.78% lower from yesterday’s close, as high volatility in oil prices failed to boost physical demand to pick up in key consumers, India and China. Expectations that prices could fall further once the Fed announces a cut in stimulus have also restrained purchases.
Gold is expected to find support at 1284.46, and a fall through could take it to the next support level of 1272.20. Gold is expected to find its first resistance at 1316.55, and a rise through could take it to the next resistance level of 1336.38.
The yellow metal is trading below its 20 Hr and 50 Hr moving averages.
