Gold rises to its highest level after the results of Fed Meeting

Gold price technical analysis 17 - June, 2013

Gold futures extended gains to hit its highest level in weeks – during early European hours on Thursday after the minutes of the meeting said on Wednesday for the month of August that the Fed may be close to the implementation of a third round of monetary easing.

On the Comex division of the New York Mercantile Exchange, the futures trading of gold for October delivery traded at 1666 USD/troy per ounce during European morning trade, gaining 1.7%.

Earlier in the day, prices rose by up to 1.75% to reach its highest level during the session at 667.05, $ 1 per ounce, its highest level since May 1.

The gold futures contract is likely to find support at 610.25, 1 Dolarellonsh, the lowest price since August 20, and the near-term resistance at 1672 USD/troy per ounce, the highest price since May 1.

Gold prices rose on Wednesday after the minutes showed the Fed that many policymakers believe that there is justification for additional monetary easing policy “unless there is evidence of a strengthening” substantial and sustainable “in the economic recovery.

The dollar came under broad selling pressure, with the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, rose 0.3% to trade at 81.33, the lowest level since May 22.

And track the movements in the price of gold this year largely transform expectations about whether the U.S. central bank will pump more money into the financial system.

Gold rose 15% in earlier this year to record, $ 790 per ounce ounce after announcing that the Federal Reserve in January it will keep interest rates near zero until at least late 2014 and referred to the possibility of working a new round of monetary easing and asset purchases ..

However, prices have fallen by 7% in prices since late February, after the Fed Vhll in achieving more and easing fears of a deepening debt crisis in the euro zone, which has fueled demand for the precious metal and the U.S. dollar.

Found gold more support after China’s data on manufacturing negative earlier as policy makers said in Beijing that there are hopes that the work of new stimulus measures to boost growth in the second largest economy in the world.

The data showed earlier in the day that the index of purchases in China, HSBC fell to its lowest level in nine months of $ 47.8 in August from 49.3 final reading in July, and new orders fell in the face of weak global demand.

Monetary incentives benefit gold, and is considered the metal as a safe store of value and a hedge against inflation.

Elsewhere in the Comex, silver rose for the month of September 3.1% to trade at 30.46 dollars per ounce, its highest level since May 3, while copper for September delivery rose by 1.3% to trade at $ 3.499 a pound.