23 Aug Friday View

Gold closed higher yesterday recovering the loss it had the day before, with a test of higher high as well. As anticipated, the FOMC Meeting Minutes release didn't clearly gave any indication on when the QE tapering is going to get started.

As we've mentioned before several times, the breach of 32550 (USD 1350) level would see further higher levels tested, there are several other factors that is kind of supporting gold for now, like, investors once again are injecting money into gold-backed exchange traded fund, seen that the SPDR Gold Trust reported inflows of 1.8 tonnes on Tuesday, the fourth daily rise in its reserve in the last two weeks ; Physical demand in China and India is growing ; and an indication that the QE may stay somewhat longer than what many anticipate.

Now, technically, if 33383 (USD 1384.51) level is broken, there are chances we see further higher prices. 33000 (USD 1368.63) and 32550 (USD 1350) levels should provide support for now.

Trade Happy, Trade Safe :)