Gold Movement
Gold prices traded lower by 0.17% against the USD in the 24 hour period ending 23:00GMT, at 1270.60 per ounce, as a strong US consumer inflation data spurred gains in the US Dollar, weighing on the demand-outlook of the dollar-denominated commodity. Negative sentiment for the yellow metal was also fuelled after data showed that holdings in SPDR Gold Trust declined by 4.20 tonnes to 782.88 tonnes on Monday, the lowest level in five year. However, lingering geo-political tensions in Iraq and Ukraine, kept the commodity’s losses in check.
In the Asian session, at GMT0300, Gold is trading at 1270.00, marginally lower from yesterday’s close, ahead of the conclusion of the Fed’s two-day policy meeting, later today.
Gold is expected to find support at 1261.07, and a fall through could take it to the next support level of 1252.13. Gold is expected to find its first resistance at 1275.87, and a rise through could take it to the next resistance level of 1281.73.
The yellow metal is showing convergence with its 20 Hr moving average and is trading just below its 50 Hr moving average.
