Gold holding steady ahead of the FOMC
Looks like the bullion bulls are looking for an early boost from the Fed this side of Xmas after the metal put on a bit of a spurt yesterday to $1718.80 and pulled away from the support of the 100 day MA around $1704.55.
Recent dips have been contained ahead of the 200 day MA currently around $1662, with moves towards $1685 enticing bargain hunters and safe haven demand.
As the Fed’s ‘Operation Twist’ expires at the year end , there are some corners hoping the Fed will extend the buying of longer term US treasuries and curb sales of the shorter term debt , which would be seen in some circles as further quantitative easing and kept the underlying bias positive for Gold.
Initial resistance is now up at yesterday’s high and $1730, with support now at $1703 and $1686
Gold’s currently sitting around $1710