Gold prices held lower in Thursday night trading, as buyers drifted off following good US employment data.
Spot gold (gold for immediate delivery) topped at $1,244.40 per ounce then dropped back to $1,237 per ounce with a further reduction down to $1234 this morning. Chart support stands at $1,234 and $1,225. If the trend reverses, we may see prices targeting all-time highs of $1,265.30.
"Good data today confirms that economic figures out of the US are too volatile," a trader said. "Tomorrow’s GDP and consumer sentiment could be bad again."
Recent US employment figures have all been negative, so this improvement could soften the tone of tomorrow’s speech from the Fed chairman Bernanke, who is expected to hint at new quantative easing measures to boost liquidity into the economy. This will be preceded by the GDP report.
"Market participants are still paying a lot of attention to economic readings as uncertainty over a slowing recovery continues to haunt investors, and especially over the health of the US economy," broker VTB Capital said.
"There could be more to the upside here... in case risk averse behaviours persist also with the physical side forced to move in at these prices with seasonality kicking in at the start of autumn," it added.
NZDUSD a quite night for the currencies while everyone is waiting for the speech from the Fed.
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