Gold tried to test the key resistance at $1,300 an ounce after the most recent US Federal Open Market Committee meeting minutes and comments by Fed Chairman Ben Bernanke indicated that the central bank's quantitative easing stimulus will not be reduced in the near future as the US recovery remains weak.
However, the level of $1,300 was still a strong resistance and the price could not break above it. World gold spot prices moved sideways in the range between $1,270 and $1,300. Thai gold prices fluctuated with the changes in the baht. The late afternoon fixing in London on Friday was $1,295.75.
With gold prices moving sideways, in the short run there might be selling pressure. Once the price has slipped back on profit-taking, investors can make a decision to do some speculative buying. At any level higher than $1,300, there will be many resistance points to keep pressure on the price. The support this week will be between $1,250 and $1,200 an ounce, and the resistance will be between $1,310 and $1,375.
This article is older than 60 days, which we reserve for our premium members only.You can subscribe to our premium member subscription, here.