Buz Investors Yellow metal trading up Gold is trading at $1267.00 per ounce at 09:40 GMT this morning, 0.19% lower from the New York close.
This morning, the precious metal traded at a high of $1272.60 per ounce and a low of $1266.20 per ounce. Yesterday, gold traded 0.27% lower in the New York session and closed at $1269.40 per ounce, amid a broad strength in the greenback.
Immediate downside, the first support level is seen at $1264.23 per ounce, while on the upside, the first resistance level is at $1271.73 per ounce.
Yellow metal trading up Aims for third consecutive weekly gain
Yellow metal trading up Gold futures moved higher on Friday, poised for a third consecutive weekly gain as uncertainty surrounding the U.S. presidential election provided support ahead of next week’s U.S. Federal Reserve monetary policy meeting.
“The recent consolidation from early July through early October, followed by the U.S. dollar’s downside pressure on gold this month have created more favorable prices and buyers are starting to step back in,” said Adam Koos, president of Libertas Wealth Management Group.
A preliminary reading of gross domestic product, the clearest gauge of the health of the domestic economy, expanded at a 2.9% annual clip from July through September, aided by a surge in exports and a rebound in the size of inventories companies keep on hand for sale. The reading is up sharply from the 1.4% reading in the previous quarter. Economists surveyed by MarketWatch had predicted a 2.9% advance.
The data reinforce the view that the Federal Reserve is likely to resume lifting interest rates before the end of 2016, most likely in December. Higher interest rates have a dual effect on gold, boosting the dollar, making assets priced in the currency more expensive for buyers using other monetary units, dulling the appeal of precious metals that don’t offer interest.
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