The pair of gold/ US Dollar reached to its lowest level in two days, where the upward movement continued to face strong resistance at the level of $1300 USD/ Ounce.
The pair of gold/ USD is trading reached the level of $1300.55 USD/ Ounce after Fed Chairman Ben Bernanke said that”If the data was stronger than expected, will move faster. If you do not line data with the types of expectations that we have about the direction of the economy, we will delay process or perhaps increase purchases for once. ” It was in testimony before the Financial Services Committee of the U.S. Congress, and after that, prices moved towards $1266 USD/ Ounce and which was the bottom during the last four days.
The price movement charts show that Mr. Bernanke’s words were not sufficient enough to lure buyers back to the market. In fact, this is not surprising because he only emphasizing that the pace of asset purchases will crash up or down depending on economic conditions. Yesterday, he said, “Beige Book” Federal Bank: “Residential real estate and reconstruction activities have increased at an average to strong in all provinces that provided the information. Expansion of production in the majority of districts since the previous report.”
Thus, the recent improvements make it more likely that the Fed will move toward slowing the rate of quantitative easing, rather than keeping it as it is or increase it. Long-term, big picture for downward movement because made gold inside a narrow range of trading waiting today report from the Fed