Gold Movement
Gold prices traded higher by 0.78% against the USD in the 24 hour period ending 23:00GMT, at 1195.20 per ounce, as demand for the safe haven yellow metal rose following news of unrest in Eastern Europe and the Middle East. Meanwhile, gold prices further received support after an ECB’s official dovish comments and as investors awaited an announcement for a snap election in Japan as the country slipped into recession.
Separately, the SPDR Gold Trust showed that its gold holdings remained unchanged yesterday.
Meanwhile, the Russian central bank reported that it bought 150 metric tons of gold this year, compared to previous year’s purchase of 77 tons.
In the Asian session, at GMT0400, the pair is trading at 1192.2, with the gold trading 0.25% lower from yesterday’s close.
The pair is expected to find support at 1183.63, and a fall through could take it to the next support level of 1175.06. The pair is expected to find its first resistance at 1202.43, and a rise through could take it to the next resistance level of 1212.66.
The yellow metal is trading below its 20 Hr moving average and showing convergence with its 50 Hr moving average.
