Gold – Bullish on trump, Eyes Fed

Gold prices are trading on the front foot on account of the Trump led risk aversion in the markets, although gains are being restricted around previous day’s high on caution ahead of the Fed.

Hovers around one-month high

At $1290/Oz, the metal is trading at its highest level since Oct 4. The safe haven demand for the metal spiked yesterday after the latest poll showed Trump with a one point lead over Clinton for the first since May.

Trump is widely seen as a ‘Black Swan’. Consequently, Trump lead is forcing investors out of risk assets and the US dollar and into the safe haven assets like gold and treasuries. The focus today is also on the Fed statement.

Gold Technical Levels

Acceptance above $1292 (previous day’s high) would expose $1300 (zero figure), above which the prices could target $1314 (100-DMA). On the other hand, a breakdown of support at $1287 (session low) would shift risk in favor of a revisit to $1279 (5-DMA) and $1273 (10-DMA).