Gold Market Recap Report(CME)
The gold market was able to overcome early pressure to post moderate gains by the close of Tuesday's session. A major credit agency's warning of a potential US credit downgrade led to a sharp selloff in the Dollar, which many traders feel was the major facto with gold prices climbed back into positive territory later in the trading day. In addition, reports that labor problems are beginning to spread within the South African mining industry were also seen as a key positive factor for the gold market. Some traders felt that caution in front of tomorrow's German ESM court ruling and this week's FOMC meeting weighed on gold prices kept further gains in check.
Gold gains on hopes for Fed easing, Moody's warning on U.S. ratings (Source: www.forexpros.com)
Forexpros - Gold prices inched up in Asian trading on Wednesday after investors took up long positions in the yellow metal to ahead of a two-day monetary policy meeting at the U.S. Federal Reserve that begins later today.
Weak jobs data released in the U.S. last week bolstered expectations that the Fed will announce monetary stimulus measures on Thursday, which would send gold rising.
A Moody's warning that the U.S. may see its triple-A rating stripped if it doesn't get is fiscal house in order also sent the metal climbing.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery were up 0.02% at USD1,732.65 a troy ounce, up from a session low of USD1,737.85 and down from a high of USD1,726.65 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, buyer profit taking.
Support : 1700, 1675, 1650 level.
Resistance : 1750, 1785, 1800 level.
Remark : Gold price is having a tight congestion range between 1727 and 1740.
Idea : Long at congestion break up above 1740, set stop loss below 1725. Not encourage to short unless for a quick scalp to short at congestion break down below 1727, set stop loss above 1740 with profit target near 1700 level.
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