Forex today analysis news Gold 12.20.2013
Gold is now down by 0.7 % to $ 1.244/onz at 18:18 pm. Gold for February contract fell by 1.1 % to $ 1.243/onz on the Comex in New York.
Gold has slumped 26% this year on speculation that the Fed will soon reduce the monthly bond purchases of $ 85 billion following the improving economy.
Commodity Gold retreated for a second day in London session on fears that the Federal Reserve will reduce monetary easing as U.S. lawmakers reach a budget deal. Speculation reduction of monetary stimulus that has made gold plunged 25 % so far this year.
Gold prices look back pressure , when the press conference conducted by the Fed stating that the central bank has cut its bond purchase program by $ 10 billion, to $ 75 billion per month of $ 85 billion per month.
SPDR Gold Trust, the biggest exchange traded gold , fell by 0.3 % to 833.60 tons yesterday, the lowest level since January 2009 , and to contract by 38 % this year.
Data from the Commodity Futures Trading Commission showed bearish gold position of the hedge fund and money managers touching its highest level in 7-1/2 years, they move to close the short position was made of gold rose at the beginning of the month.
The expected fall back towards the 1180 target did not take long, falling from 1245 – pre FOMC – to a low of 1192, before a deadcat bounce. I think selling Gold is possibly the best trade on the board and early next year I am looking for a run towards the 100 Month MA at 1105 and possibly lower to about 1080. Nearer home, 1180 may well hold it up today, and if we see a rally towards 1220 I think it would provide a good sell opportunity. However ahead of the weekend now, caution please.
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