Gold Drops on Rumors around Feds Meeting

Gold

In early U.S. trading, Monday Futures prices at Comex gold are diffidently lower. The full market place is restrained to begin the trading week, awaiting the U.S. Federal Reserve meeting that will occur this week. Spot gold was last quoted down $7.20 at $1,384.75. Comex August gold last traded down $4.00 at $1,383.60 an ounce.

Asian and European stock markets remained commonly firmer overnight, but in an unresponsive place as the market expect the-two day conference of the U.S. Federal Reserve’s Open Market Committee (FOMC), which starts Tuesday morning and ends Wednesday afternoon. Ben Bernanke, Fed Chairman will as well hold a press conference after the FOMC meeting. Investors and traders will be regarding for new information from the Fed on when it will begin to bring down its quantitative easing programs that have been going on for several years.

Last Friday a report from The Wall Street Journal stated it rely on the Fed will slowly announce its “tapering” program and that interest rates will keep on low for the time coming. That report has given a boost to the world stock markets, which have been weakening for the previous month.

On Monday, after striking a four-month low last week the USD index is boosted on a short covering. The USD bears motionless have some downside near-term technical momentum.

The U.S. economic data that will be released Monday contains the NAHB housing market index and the Empire State manufacturing survey.

The London previous P.M. fixing of $1,391.25 and A.M. gold fixing is $1,386.00.

Technically speaking, prices are in an 8-month-old downtrend on the daily bar chart. The bears’ upcoming near-term downside break price neutral is closing prices under solid technical support at last week’s low of $1,364.50. The gold bulls’ upcoming upside near-term price break neutral is to turn out a close above firm technical resistance at the June high of $1,423.30. The first resistance is sighted at the overnight high of $1,391.40 and then at last week’s high of $1,394.40, as for the first support is sighted at $1,372.20 and then at last week’s low of $1,364.50.