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Gold prices rose sharply after Fed Chairman Ben Bernanke warned that the U.S. economy remains under pressure from high unemployment and cuts in government spending, and too rapid tightening of policy could undermine growth. In fact, prices have recovered from the $ 1,387 per ounce to session highs at $ 1,409 an ounce, but later the value of the precious metal fell sharply, dropping back below $ 1,400, and updating the session low.
Traders said the consolidation above strong technical resistance level at around $ 1,400 an ounce could raise prices to $ 1425, where the next resistance level.
Recall that on Tuesday, the head of the New York Fed, William Dudley and St. Louis James Bullard said that continued economic progress will be needed before they are supported by the reduction of bond purchases.
We also note that gold has had little support strong demand from China, which is the second-largest gold consumer after India. Note that the Shanghai gold prices fell slightly, but were still about $ 30 higher than the spot price of gold, which indicates that Chinese demand was higher because of the gold was cheaper for local buyers. But buying in India has slowed down, as the central bank tries to curb the trade deficit by reducing imports of gold and silver.
In addition, the data showed that stocks in the SPDR Gold Trust fell Tuesday by 0.8%, reaching 1,023.08 tons, which is the minimum for more than four years.
The cost of the June gold futures on COMEX today dropped to 1374.60 dollars an ounce.
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