The gold market ended up posting moderate losses during Monday's session, but only gave back a small portion of Friday's huge gains. Expectations that the Federal Reserve will start fresh quantitative easing measures at this week's FOMC meeting played a large role in keeping gold prices in close proximity to their recent highs. Reports of labor unrest in the South African mining industry were also seen as a positive factor for the gold market early this week. However, lukewarm Chinese economic data over the weekend ended up eroding risk sentiment for gold and other physical commodity markets.
Gold holds steady to lower as investors await Fed monetary policy moves (Source: Forexpros.com)
Forexpros - Gold prices slipped in Asian trading on Tuesday as investors sold the yellow metal to await the outcome of a two-day monetary policy meeting at the Federal Reserve that begins Wednesday.
The precious metal soared on Friday after the U.S. government released a very poor August jobs report that fueled already building sentiments the Fed is planning to stimulate the U.S. economy, this week.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery were down 0.12% and trading at USD1,727.15 a troy ounce, up from a session low of USD1,726.75 and down from a high of USD1,728.25 a troy ounce early during the session.
Gold futures were likely to test support at USD1,724.55 a troy ounce, Monday's low, and resistance at USD1,740.75, Monday's high.
Chart Reading :
Bollinger band reading : pullback correction upside biased.
MACD Histogram : weakening, profit taking.
Support : 1700, 1675, 1650 level.
Resistance : 1750, 1785, 1800 level.
Idea : Long at pullback correction/weakness/support, set stop loss at lower support level. Not encourage to short.
No comments:
Post a Comment