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Gold futures traded higher in U.S. afternoon hours Monday, as Spanish bailout speculation lent support to the single currency.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,728.95 a troy ounce during U.S. afternoon trade, climbing 0.30%.
Gold prices were likely to find support at USD1,688.85 a troy ounce, the low from September 7 and resistance at USD1,754.95, the high from October 17.
The euro found support after Spanish regional election results indicated support for the austerity policies of Prime Minister Mariano Rajoy.
The center-right Popular Party of Prime Minister Rajoy increased its majority in his home region of Galicia on Sunday, removing a possible obstacle to formally requesting a bailout from Spain’s euro zone partners.
A bailout request by Spain would activate the European Central Bank’s bond purchasing scheme, aimed at lowering high peripheral bond yields in the euro zone.
Prime Minister Rajoy said Friday he still had not decided whether to request a sovereign bailout.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.15% to trade at 79.59.
A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
Prices were lower earlier in the session, as some technical selling weighed after prices broke below key support levels close to their 50-day moving average, painting bearish chart patterns.
The precious metal could see further losses in the near-term after having failed to break above the key USD1,800-level earlier in the month.
Gold futures rallied to an 11-month high of USD1,798.05 a troy ounce on October 5, boosted by ongoing expectations policymakers around the world will launch more stimulus to support the weak global economy.
Markets may stay subdued ahead of the release later in the week of U.S. data including monthly new home sales, durable goods orders and third-quarter GDP figures.
Investors are also turning their attention to the Federal Reserve's policy meeting on Tuesday and Wednesday after the central bank announced its third round of quantitative easing last month.
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.
Elsewhere on the Comex, silver for December delivery added 1.04% to trade at USD32.43 a troy ounce, while copper for December delivery shed 0.5% to trade at USD3.619 a pound.
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Gold prices rose on Tuesday after regional election results in Spain rekindled hopes Madrid will request a bailout, which sent the euro rising and the dollar falling, a recipe for rising gold prices.
Gold and the dollar normally trade inversely from one another.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery were up 0.15% at USD1,728.95 a troy ounce, up from a session low of USD1,727.95 and down from a high of USD1,730.35 a troy ounce.
Gold futures were likely to test support at USD1,718.65 a troy ounce, Monday's low, and resistance at USD1,744.25, Friday's high.
Spanish Prime Minister Mariano Rajoy's center-right Popular Party increased its majority presence in the prime minister's home region of Galicia, which investors saw as a sign of support for economic policies needed to request a bailout.
Last week, Spanish Prime Minister Mariano Rajoy said his government felt it was under no pressure to seek a bailout, which pushed the euro down and fueled a wait-and-see mode among many investors.
With voters apparently supportive of Rajoy's austerity policies, investors went long on the single currency on sentiments the government may be ready to make asking for a financial lifeline official.
Requesting financial assistance would allow Spain to tap the European Central Bank's bond-buying program, which would lower yields in Spanish government debt auctions and ease credit conditions in the country.
The rally sparked broader demand for risk that sent the dollar falling and gold rising.
News that physical demand may be on the rise in India fueled demand for the precious metal as well.
The Federal Reserve is due to announce its latest statement on U.S. monetary policy later this week, which sparked some gold selling and demand for the greenback though the overall sentiment for the precious metal remained bullish.
Elsewhere on the Comex, silver for December delivery was up 0.41% and trading at USD32.385 a troy ounce, while copper for December delivery was up 0.18% and trading at USD3.628 a pound.
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http://i45.tinypic.com/2qiu2d3.gif
The short term trend of the Gold is to the upside. Intraday trading range of the Gold is expected among key support at 1695.00 and key resistance at 1750.00. Based upon my chart analysis, I prefer to buying the Gold around 1715.00 with targets 1735.00, 1755.00 then 1780.00 and stoploss with four hour candle closing below 1700.00.
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Expected trading range for today is between: Support 1700.00 and 1740.00 resistance
General tendency is expected for the day: Down, what is not breached 1731.00
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Falling stochastic on Daily chart indicating gold
is due to bearish correction phase for nearest
term, break below 1720 area could bring gold
lower testing 1710 area before testing 1690
region. Only a break above 1735 which should
continue bullish outlook targeting 1745 or
even 1755 area.
Resistance Level : 1735, 1745, 1755
Support Level : 1720, 1710, 1690
Trading Range : 1735 – 1710
Trend : Bearish
Bias
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Elliott: zigzag or flat correction 1738.43
It should test 1742.07 area after which a sell off down to 1718.39 or extended to 1708.35 area is expected.
Warning: End of trend
Technical points
Key point 1,735.2500
Entry point 1,724.5500
Elliott 1,713.8500
Closing 1,728.4400
Projection 1,738.4300
Trendline 1,730.7500
Trendline 1,721.3200
Supports / Resistances
Res 2 1,739.4400
Ex-High 1,729.3900
Res 1 1,733.9400
Pivot 1,723.8900
Sup 1 1,718.3900
Ex-Low 1,713.8500
Sup 2 1,708.3500
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Gold futures were lower during European morning trade on Tuesday, re-approaching a six-week low hit in the previous session as the U.S. dollar pushed higher after Moody’s lowered credit ratings on five Spanish regions.
Investors are also awaiting the outcome of the Federal Reserve's two-day policy meeting on Wednesday.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,719.35 a troy ounce during European morning trade, shedding 0.4%.
Prices fell by as much as 0.5% earlier in the session to trade at a daily low of USD1,717.75 a troy ounce. On Monday, gold prices touched USD1,713.30 a troy ounce, the cheapest level since September 7.
Gold prices were likely to find support at USD1,688.85 a troy ounce, the low from September 7 and resistance at USD1,754.95, the high from October 17.
Market sentiment deteriorated after ratings agency Moody’s cut the credit ratings of Catalonia and four other Spanish regions late Monday, citing their worsening liquidity positions and predicting that these regions are likely to ask the central government for aid in 2013.
The down****e comes on the heels of regional elections in Spain. Prime Minister Mariano Rajoy’s center-right Popular Party increased its majority in his home region of Galicia on Sunday, removing a possible obstacle to formally requesting financial aid from Spain’s euro zone partners.
Rajoy said last week he still had not decided whether to request a sovereign bailout.
Market players have been anticipating for the past month that the Spanish government would ask for a full-scale sovereign bailout.
A bailout would allow the European Central Bank 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.
The U.S. dollar was higher against the euro, while the dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.25 to trade at 79.82, the highest since October 15.
A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
Meanwhile, gold traders are turning their attention to the Fed’s policy meeting on Tuesday and Wednesday after the central bank announced its third round of quantitative easing last month.
The Fed vowed in mid-September to buy an average of USD40 billion of mortgage-backed securities a month until the economy shows significant improvement.
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.
Elsewhere on the Comex, silver for December delivery fell 0.45% to trade at USD32.11 a troy ounce, while copper for December delivery dropped 0.95% to trade at USD3.588 a pound.
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The Gold prices grew and were able to recover from the losses incurred in the previous session, where there were recorded a fall to $1713 level. The November futures price of gold on COMEX today raised $ 4.80 and hit $1729.20 per troy ounce level.
---------- Post added at 09:52 AM ---------- Previous post was at 09:46 AM ----------
The Gold prices grew and were able to recover from the losses incurred in the previous session, where there were recorded a fall to $1713 level. The November futures price of gold on COMEX today raised $ 4.80 and hit $1729.20 per troy ounce level.
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XAU/USD
BUY
Enter :- 1728.60000
TP1 :- 1728.76363
TP2 :- 1728.92727
SL :- 1728.27276
Note this is just my attempt to predict the price could be right or wrong stop-loss order is very important must put always follow the trend
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UPDATE 1-UK's Hague tells Germans "less is more" on Europe
UK's Hague says EU "sucks up decision-making"
* Criticisms could further strain ties with Germany
* London rules out joining EU banking union
By Stephen Brown
BERLIN, Oct 23 (Reuters) - Britain's foreign secretary told Germany on Tuesday his country was more disillusioned than ever with the European Union and set out a vision of its future, based on the premise "less is more", that clashed directly with Berlin's plans for the euro zone.
William Hague dashed any hope of a conciliatory message to a key European partner which fears Britain is ****ually withdrawing from the EU, saying Britons feel the Union "is a great machine that sucks up decision-making".
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After strengthening that occurred yesterday has reached a key area in 1731 and unsuccessfully break up, gold moves back down. Level 1731 is still a point of concern because the price will still validate those levels.
Spoiler: