Last Updated : 23 October 2012 at 11:15 IST
Gold in ‘wait and see’ mode ahead of FOMC
Source :Commodity Online
Wait and see prevails as two-day Fed meeting starts on Tuesday. Traders (are) carefully looking at headlines, looking for inflationary signs and re-examining sell stops and buy stops.
By Col. Ajay
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NEW YORK (Commodity Online): Gold is near steady to modestly higher in early activity as the market seemingly enters a “wait and see” period with the Federal Open Market Committee meeting Tuesday and Wednesday, said George Gero, vice president and precious-metals strategist with RBC Capital Markets Global Futures.
The December futures initially extended Friday’s correction lower overnight, bottoming at $1,714.40 an ounce, their lowest level since Sept. 7, before finding some footing.
“Wait and see prevails as two-day Fed meeting starts on Tuesday. Traders are carefully looking at headlines, looking for inflationary signs and re-examining sell stops and buy stops,” they added.
The key chart areas are now $1,710 on the downside and $1,750 on the upside, Gero concluded.
December gold last traded up $2.20 at $1,726.20 an ounce on the Comex division of the New York Mercantile Exchange. Spot gold was last quoted up $4.80 at $1,725.75.
Global gold prices ended the US day session modestly higher in quieter trading on Monday. The precious metals were supported on some short covering and bargain hunting following Friday’s strong selling pressure. Gold and silver prices did overnight dip to fresh six-week lows.
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