Gold moved in a narrow range yesterday, again capped by the 20 DMA on the upside and finding support around 1460, forming a "dragonfly doji" on the daily chart. Overnight gold has barely moved in very quiet trading, moving with a slight downward bias to currently trade around 1470.
The first day of a new trading month sees a slew of economic data releases, with the ADP employment data giving an early indication of the health of the US jobs market ahead of the key Non Farm Payrolls number on Friday.
The main focus of the trading day will be the FOMC rate decision at 7pm UK time, though there are a host of other data releases throughout the day to keep traders occupied.
Oil has backed off after reaching the resistance area around $95, though equities continue their seemingly unstoppable rise. The dollar remains weak ahead of the FOMC announcement and the ECB rate decision due out tomorrow.
Gold has a band of strong resistance in the 1475-1485 area that has held the price in check for the past 4 days. It will take something new to restart the rally - the longer the price remains stuck below 1485, the higher the chances of a break lower. A break of 1485 will see a move towards 1500 and further stiff resistance in this area.
Should a decline develop on a break of 1460, initial support can be found at 1448, with 1420 and key support at 1404 below that. A break of 1404 could see a quick return to the support zone at 1320-1340.
Today's video for subscribers looks at the recent trading in more detail and our thoughts on gold's next moves.
The first day of a new trading month sees a slew of economic data releases, with the ADP employment data giving an early indication of the health of the US jobs market ahead of the key Non Farm Payrolls number on Friday.
The main focus of the trading day will be the FOMC rate decision at 7pm UK time, though there are a host of other data releases throughout the day to keep traders occupied.
Oil has backed off after reaching the resistance area around $95, though equities continue their seemingly unstoppable rise. The dollar remains weak ahead of the FOMC announcement and the ECB rate decision due out tomorrow.
Gold has a band of strong resistance in the 1475-1485 area that has held the price in check for the past 4 days. It will take something new to restart the rally - the longer the price remains stuck below 1485, the higher the chances of a break lower. A break of 1485 will see a move towards 1500 and further stiff resistance in this area.
Should a decline develop on a break of 1460, initial support can be found at 1448, with 1420 and key support at 1404 below that. A break of 1404 could see a quick return to the support zone at 1320-1340.
Today's video for subscribers looks at the recent trading in more detail and our thoughts on gold's next moves.