SELL GOLD
GOLD NOW START DOWN TREND 1.720.25 TO 1716.75
Gold futures added to gains during U.S. morning hours on Wednesday, hitting a one-week high as the U.S. dollar came under pressure amid expectations of more quantitative easing from the Federal Reserve when it concludes its policy-setting meeting later in the day.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,717.95 a troy ounce during U.S. morning trade, up 0.5% on the day.
Prices traded in a tight USD8-range of USD1,710.15 a troy ounce, the session low and a daily high of USD1,718.95 a troy ounce, the highest since December 3.
Gold prices were likely to find support at USD1,685.75 a troy ounce, the low from December 7 and resistance at USD1,724.45, December 3’s high.
Investors focused on the outcome of the Federal Reserve’s policy meeting later in the day, amid expectations the central bank will continue to pursue a policy of monetary easing in order to support the U.S. economic recovery.
Many analysts expect the Fed to announce monthly bond purchases of USD45 billion. The U.S. central bank vowed in September to buy USD40 billion in mortgage securities each month until the economy improves in a third round of what is known as quantitative easing, or QE3.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would pump more money into the financial system.
The U.S. dollar came under broad selling pressure amid expectations the Fed would keep its loose monetary policy.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.2% to trade at 80.03, the lowest level since December 6.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
Meanwhile, investors continued to monitor developments surrounding the fiscal cliff in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1, unless a divided Congress and the White House can work out a compromise in the three weeks left before the deadline.
President Barack Obama said recently that any solution must include spending cuts and raising revenue, including increasing taxes on the wealthiest. Republican leaders say they will agree to higher revenue, but they want to close loopholes or reduce tax breaks rather than raise rates.
Elsewhere on the Comex, silver for March delivery added 0.85% to trade at USD33.29 a troy ounce, while copper for March delivery rose 0.25% to trade at USD3.696 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,717.95 a troy ounce during U.S. morning trade, up 0.5% on the day.
Prices traded in a tight USD8-range of USD1,710.15 a troy ounce, the session low and a daily high of USD1,718.95 a troy ounce, the highest since December 3.
Gold prices were likely to find support at USD1,685.75 a troy ounce, the low from December 7 and resistance at USD1,724.45, December 3’s high.
Investors focused on the outcome of the Federal Reserve’s policy meeting later in the day, amid expectations the central bank will continue to pursue a policy of monetary easing in order to support the U.S. economic recovery.
Many analysts expect the Fed to announce monthly bond purchases of USD45 billion. The U.S. central bank vowed in September to buy USD40 billion in mortgage securities each month until the economy improves in a third round of what is known as quantitative easing, or QE3.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would pump more money into the financial system.
The U.S. dollar came under broad selling pressure amid expectations the Fed would keep its loose monetary policy.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.2% to trade at 80.03, the lowest level since December 6.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
Meanwhile, investors continued to monitor developments surrounding the fiscal cliff in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1, unless a divided Congress and the White House can work out a compromise in the three weeks left before the deadline.
President Barack Obama said recently that any solution must include spending cuts and raising revenue, including increasing taxes on the wealthiest. Republican leaders say they will agree to higher revenue, but they want to close loopholes or reduce tax breaks rather than raise rates.
Elsewhere on the Comex, silver for March delivery added 0.85% to trade at USD33.29 a troy ounce, while copper for March delivery rose 0.25% to trade at USD3.696 a pound.
