Gold Low as Market-wide begin lost Momentum, Silver running into Resistance

Gold is inching lower overnight as the market-wide correction in post-FOMC moves seemingly begins to lose momentum. The upcoming speech from Ben Bernanke is likely to be the most market-moving bit of information to hit the tape over the coming 24 hours. Any clues alluding to the possibility that policymakers may yet opt to resume increasing the balance sheet in the event that growth remains disappointing are likely to stoke the yellow metal higher, while a strong indication that the Fed has moved on to other options would have the opposite effect.

Gold price on the technical front, near-term support and resistance levels remain at $1624.09 and $1680.78, the 23.6% and 38.2% Fibonacci retracements respectively. A break lower exposes $1589.14. Gold is inching lower overnight as the market-wide correction in post-FOMC moves seemingly begins to lose momentum.

The upcoming speech from Ben Bernanke is likely to be the most market-moving bit of information to hit the tape over the coming 24 hours. Any clues alluding to the possibility that policymakers may yet opt to resume increasing the balance sheet in the event that growth remains disappointing are likely to stoke the yellow metal higher, while a strong indication that the Fed has moved on to other options would have the opposite effect. On the technical front, near-term support and resistance levels remain at $1624.09 and $1680.78, the 23.6% and 38.2% Fibonacci retracements respectively. A break lower exposes $1589.14.

Category: 2011 gold, Gold, gold market, gold momentum, gold price, silver price, spot gold