Gold Trading Recap
Demand for Gold soffened Tuesday as players sought other forms of investment, such as the USD.
Indian demand for Gold was sumewhat disappointing as the Rupee is trading around its all time highs.
Some Asian demand was seen, but bulk buying is limited ahead of the year-end.
The precious Yellow metal was subjected to further pressure Tuesday as the prior close was below the 50-Day Moving Average, and a failure to hold the 38.2% Fibo level 1681.
As the USD strengthens, particularly against the Euro, it puts more pressure on Gold.
Key support for Gold is at the 200-Day Moving Average at 1617.
Feb Gold last traded - 30.00 at 1,638.00.
Comex Gold futures sold off sharply in after-hours US electronic trading and pushed to a fresh seven-week low following the Fed's FOMC meeting that gave no hints of any further quantitative easing of US monetary policy.
That helped to push the US Dollar index sharply higher and to a fresh 2-mo high, which in turn put more downside price pressure on Gold.
The Gold Bears gained more technical momentum Tuesday afternoon. However, the long term up-trend is intact.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.