Despite receiving a boost yesterday after US GDP grew less than expected, gold is moving back down as safe haven demand keeps dropping due to yesterday’s decision by the Fed to continue its plan to taper the stimulus. Also, worse than expected Chinese manufacturing data adding to the downward momentum as many traders felt that physical demand could drop. The precious metal is approaching its support at 1286. Should it break this level, more downward movement may be in order. Be sure to pay attention to Yellen’s speech and US manufacturing data later today. Look for resistance at 1306.
May 1, 2014 – Commodities News
Hot Asset For Today: Gold
Despite receiving a boost yesterday after US GDP grew less than expected, gold is moving back down as safe haven demand keeps dropping due to yesterday’s decision by the Fed to continue its plan to taper the stimulus. Also, worse than expected Chinese manufacturing data adding to the downward momentum as many traders felt that physical demand could drop. The precious metal is approaching its support at 1286. Should it break this level, more downward movement may be in order. Be sure to pay attention to Yellen’s speech and US manufacturing data later today. Look for resistance at 1306.
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