The gold could continued making new highs reaching today $1779 per ounce on increasing market expectation of having a new stimulation action by the Fed which came with no new action or hinting of a new action in a form of QE3 which forced the gold to retreat from $1760 per ounce to $1740 following the Fed's statement which has come with just Fed's expectations of having the interest rate between 0% and 0.25% till the middle of 2013 instead of the language of keeping the interest rate at this low levels for extended period of time and also it has come with lower appreciation of the inflation upside risks in the coming period maintaining Fed's long term expectation of inflation unchanged and this is concluded by the growth downside risks impact on the prices.

So, the gold could creep up again of decreasing of the risk appetite again trading currently above 1760 again and also the US indexes came down again after it could rebound in cheeriness of having new stimulating action and S&P 500 came down to 1115 following the statement from 1137 before it after it could rebound earlier from 1080 to 1152 and further easing from here can be met by supporting level at 1080 , 1036 then 1003 again while in the case of rebounding continuation from here it can meet by God's will, resistance at 1152, 1192, 1222, 1267 then 1289 by 1300 psychological level again.

Kind Regards

FX Market Strategist
Walid Salah El Din