31 Oct 2013
Gold revisits $1,335 lows; succumbs to pressure
FXstreet.com (Chicago) – Gold continues falling as market participants in Asia react to earlier news about the US Federal Reserve published results.
Official highlights - Fed report
“Taking into account the extent of federal fiscal retrenchment over the past year, the Committee sees the improvement in economic activity and labor market conditions since it began its asset purchase program as consistent with growing underlying strength in the broader economy. However, the Committee decided to await more evidence that progress will be sustained before adjusting the pace of its purchases. Accordingly, the Committee decided to continue purchasing additional agency mortgage-backed securities at a pace of $40 billion per month and longer-term Treasury securities at a pace of $45 billion per month.”
‘When the Committee decides to begin to remove policy accommodation, it will take a balanced approach consistent with its longer-run goals of maximum employment and inflation of 2 percent.”
Interest rates were maintained at 0.25%.
Gold price action
Gold prints lows at $1,335 and highs at $1,338.80 and hourly charts evidence a strong retracement with a short-term bearish channel that extends with a metal repulsed by the $1,360 strong resistance.
Official highlights - Fed report
“Taking into account the extent of federal fiscal retrenchment over the past year, the Committee sees the improvement in economic activity and labor market conditions since it began its asset purchase program as consistent with growing underlying strength in the broader economy. However, the Committee decided to await more evidence that progress will be sustained before adjusting the pace of its purchases. Accordingly, the Committee decided to continue purchasing additional agency mortgage-backed securities at a pace of $40 billion per month and longer-term Treasury securities at a pace of $45 billion per month.”
‘When the Committee decides to begin to remove policy accommodation, it will take a balanced approach consistent with its longer-run goals of maximum employment and inflation of 2 percent.”
Interest rates were maintained at 0.25%.
Gold price action
Gold prints lows at $1,335 and highs at $1,338.80 and hourly charts evidence a strong retracement with a short-term bearish channel that extends with a metal repulsed by the $1,360 strong resistance.