16 Oct Wednesday View

No resolution over the government shutdown and debt ceiling as the deadline for tomorrow nears is now reflecting some fear in the financial market. U.S. equity indexes closed lower yesterday with Dow Jones 15168.01 - 133.25 (-0.87 %), S & P 500 -1698.06 (-0.71%) and Nasdaq 3794.01 -21.26 (-0.56%). And there is a headline today that "U.S. faces potential downgrade". All these negative sentiments in the market is somewhat good for gold. But the fact that the U.S. would default is simply unacceptable and there is a perception in worldwide financial market that such an event would be catastrophic not only for the U.S. economy but economies around the globe, so at any cost it would be  prevented, is somewhat keeping the gold from rocketing.

Price corrected from yesterday's low of 30174 (USD 1251.43) and now trading at around 30855 (USD 1279.67), 31000 (USD 1285.68) is seen as a resistance as of now. On higher time frame the price is still trading below 150 SMA and falling trend line.

Trade extremely cautiously under circumstances like this one :)