Gold: Near Term Support Is Near $1179
AvaTrade | Apr 09, 2015 04:27AM ET
Fundamental Analysis
Traders are finding it challenging to renew their vowels for gold and this is despite the fact that the Federal reserve committee had no unity in their decision yesterday. The more divided the Fed officials are, the more uncertainty there is about a rate hike. So, this should be a good news for gold and we should have seen a pop on the back of this! However, this was not the situation and there are two reasons for this; Firstly, a rake hike is already built in the price and as we have said before, that the rate hike may not have such a devastating impact on the gold price as tapering did. Finally, traders do not believe that the split in the committee decision will last long and we will see the Fed testing the water soon.
Technical Analysis
The near term support for the metal is near $1179 and a break of this will open the floor towards the $1159 mark. The upward move is capped by the resistance of $1213.
Disclosure and Disclaimer: The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.
by Naeem Aslam
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