Gold Poised For 2nd Weekly Rally On US Stimulus Bets
ICN.com | Oct 25, 2013 05:53AM ET
Gold eased early Friday, paring some of yesterday`s rally that took prices to almost a five-week high, heading to its second weekly gain in more than two months.
The precious metals market saw some profit taking in the final hours of trade in Asia, after the yellow metal climbed to the highest level in nearly five weeks yesterday, pushed by the soft dollar amid growing expectations the Federal Reserve will postpone its billion-friendly monetary stimulus for longer period.
euro is trading near its fresh two-year high of $1.3831 against the dollar, flushing away disappointing eurozone data that showed business activity unexpectedly slowed in October.
On the chart, we can clearly see that gold prices reached $1,350 resistance, signaling a pullback after testing this key resistance, a break above $1,350 is necessary to confirm the upside movement.
The bullish wave remains intact and will possibly continue. However, a minor retracement isn`t ruled out as momentum indicators signal overbought conditions.
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