Movement correction of the sharp decline in the week appeared 1752.00-1753.00 area held strong. Now, the signal bearish trend visible transitions take place. The target can be a concern to be around 1742.00-1741.00.
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Movement correction of the sharp decline in the week appeared 1752.00-1753.00 area held strong. Now, the signal bearish trend visible transitions take place. The target can be a concern to be around 1742.00-1741.00.
Gold futures trimmed gains during U.S. morning hours on Wednesday, retreating from the highest level of the session following the release of significantly better-than-expected U.S. housing data.
The precious metal continued to draw support from a strong euro, which rallied to a one-month high against the U.S. dollar after Spain avoided a down****e to junk status by ratings agency Moody’s.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,748.85 a troy ounce during U.S. morning trade, adding 0.15%.
Prices rose by as much as 0.45% earlier in the session to hit a daily high of USD1,754.95 a troy ounce, the strongest level since October 15.
Gold futures were likely to find near-term support at USD1,730.15 a troy ounce, the low from October 15 and resistance at USD1,774.95, the high from October 12.
The Commerce Department said U.S. housing starts rose by 15% last month to a seasonally adjusted annual rate of 872,000 units, the fastest rate since July 2008 and easily outstripping expectations for a 2.7% increase.
Housing starts for August were revised up to 758,000 million units from a previously reported 750,000 million units.
Building permits grew by 11.6% to a 894,000-unit pace in September, while August's permits were unrevised at 801,000 units.
The upbeat housing data reinforced the view that the U.S. economy is improving, raising concern the Federal Reserve might scale back its monetary easing measures.
The Fed vowed in mid-September to buy USD40 billion in mortgage securities each month until the economy improves in a third round of what is known as quantitative easing, or QE3.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would pump more money into the financial system.
Prices were higher earlier in the session after rating agency Moody's affirmed its Baa3 investment ****e sovereign rating on Spain late Tuesday, easing fears of an imminent down****e to junk status.
In a report, Moody’s expressed confidence that reforms enacted by the Spanish government and support from the euro zone would ensure that Madrid had continued access to the credit market.
The yield on Spanish 10-year bonds fell to 5.49% following the announcement, the lowest level since April.
Speculation that the debt-strapped nation was moving closer to requesting a bailout further supported sentiment, after Spanish government officials said earlier in the week they were exploring the option of requesting a credit line from the European Stability Mechanism, in order to satisfy the terms of the European Central Bank’s bond buying program.
A bailout would allow the ECB to step in and buy Spanish sovereign debt, which would result in reduced borrowing costs for the debt-strapped nation. But Spain has been reluctant to do so because it may come with conditions on its budget.
European Union policymakers will hold a two-day summit in Brussels starting on Thursday to discuss ways to firewall and extinguish the debt crisis as well as Greece's steps towards fiscal recovery.
The euro rallied to a one-month high against the greenback on Moody’s decision, while the dollar index, which tracks the performance of the greenback against a basket of six other major currencies, declined 0.5% to trade at 79.02, the lowest since September 17.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
Elsewhere on the Comex, silver for December delivery rose 0.1% to trade at USD32.99 a troy ounce, while copper for December delivery added 0.5% to trade at USD3.718 a pound.
Copper traders were looking ahead to Chinese third quarter growth figures due out on Thursday, to gauge whether the world second largest economy is heading towards a hard or a soft landing.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Main ye thread GOLD ke discussion ke liye bana raha hain. Sabhi members ko ya post karne ke liye swagat karta hoon. good like forex work
Gold has finally done something after consolidation at the top of the multiyear range for several weeks. The sharp break has resulted in a test of the 23.6% retracement of the advance from the late 2011 low. The area is also defined by September congestion. This is a level that could produce a low although 1715 (9/13 low) is probably stronger. The drop has shifted reward/risk to bulls against the 9/7 low at 1689.” Near term, gold faces a test at 1754. Support is now 1737.
LEVELS: 1715 1728 1737 1754 1770 1780
Gold on consolidation, the price move so slow. but, after I see to the MACD condition on 4H TF = this look still to Up bulls again if then buyer can break up to more price 1753.20. So, if that happen search for Buy here :)
Gold technical analysis for 18.10.2012 by using : Auto pivot indicator.
resistance 3:1765.24
resistance 2:1759.28
resistance 1:1754.56
pivot point :1748.60
support 1:1743.88
support 2:1737.92
support 3:1733.20
Gold prices gave back earlier gains amid profit-taking during Asian trading on Thursday, as investors looked beyond a Moody's decision to stick with Spain's debt ratings.
Moody's Investors Service confirmed Spain's Baa3 government bond rating as well as the country's short-term rating at (P)Prime-3 earlier this week.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery were down 0.16% at USD1,750.25 a troy ounce, up from a session low of USD1,749.45 and down from a high of USD1,751.35 a troy ounce.
Gold futures were likely to test support at USD1,744.15 a troy ounce, Wednesday's low, and resistance at USD1,754.95, Wednesday's high.
Moody's assigned a negative outlook to Spain's rating, though investors went long on higher-yielding currencies and sold off the dollar, gold's traditional hedge, amid a global risk-on trading session.
Market talk that Spain is growing closer to formally requesting financial assistance from its European neighbors bolstered gold as well.
Solid housing data out of the U.S. enticed investors to come out of safe-haven dollar positions, which sent gold gaining before profit-taking kicked in.
The U.S. Census Bureau reported earlier that housing starts rose 15% in September to a seasonally adjusted 872,000 units, far surpassing market calls for a 2.7% increase to 770,000.
The U.S. government added that the number of building permits issued in September rose 11.6% to a seasonally adjusted 894,000, beating out expectations for a 1.1% gain to 810,000.
Elsewhere on the Comex, silver for December delivery was down 0.19% and trading at USD33.168 a troy ounce, while copper for December delivery was down 0.07% and trading at USD3.742 a pound.
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The short term trend of the Gold is to the upside. Intraday trading range of the Gold is expected among key support at 1720.00 and key resistance at 1775.00. Based upon my chart analysis, I prefer to buying the Gold around 1735.00 with targets 1755.00, 1775.00 then 1790.00 and stoploss with four hour candle closing below 1720.00.
The price of gold continued trading side that are keeping him steady near 1750.00, while the price is still stuck between the central levels have been clarified in our technical reports yesterday.
Spoiler:
Bias remains neutral in nearest term, break
above 1753 area should change bullish bias
targeting 1760 Immediate support is found
around 1743 break below this area could
trigger further bearish momentum testing
1734 region.
Resistance Level : 1753, 1760, 1775
Support Level : 1743, 1734, 1728
Trading Range : 1734 – 1760
Trend : Neutral