Gold Movement
Gold prices traded higher 0.69% against the USD in the 24 hour period ending 23:00GMT, at 1270.80 per ounce, following disappointing economic data in the US, as the ADP private sector employment increased less than expected. Gold prices were further boosted after with the PBoC surprisingly cut its reserve requirement ratios to spur economic activity in the world’s second biggest economy, thus boosting the demand for the precious yellow metal.
Meanwhile, bullion investors continued to keep an eye on the developments in Greece regarding its debt woes, as Greek Finance Minister, Yanis Varoufakis is scheduled to meet ECB Chief, Mario Draghi later today, in order to discuss about the nation’s outstanding government debt with international creditors.
Separately, gold holdings in the SPDR Gold Trust, narrowed to 764.94 tons, from its previous close of 766.73 tons.
In the Asian session, at GMT0400, the pair is trading at 1271.90, with the gold trading 0.09% higher from yesterday’s close.
The pair is expected to find support at 1262.73, and a fall through could take it to the next support level of 1253.56. The pair is expected to find its first resistance at 1277.83, and a rise through could take it to the next resistance level of 1283.76.
The yellow metal is trading above its 20 Hr and 50 Hr moving averages.
