Gold Movement
Gold prices traded lower by 0.47% against the USD in the 24 hour period ending 23:00GMT, at 1232.60 per ounce.
In data released yesterday, the trade deficit in the US shrank to its lowest level in four years which boosted the US Dollar and dampened demand for the yellow metal. Meanwhile, the greenback was further boosted after two top Fed officials offered mixed signals regarding the tapering of the Fed’s massive bond-buying programme. The Federal Reserve Bank of San Francisco President, John Williams, stated that the central bank should eventually eliminate its bond purchases this year assuming the economy picks up as expected.
In the Asian session, at GMT0400, Gold is trading at 1227.02, 0.45% lower from yesterday’s close.
Gold is expected to find support at 1219.61, and a fall through could take it to the next support level of 1212.20. Gold is expected to find its first resistance at 1239.96, and a rise through could take it to the next resistance level of 1252.90.
The yellow metal is trading below its 20 Hr and 50 Hr moving averages.
