The tone of US economy made the US dollar stronger. The Federal minutes pressure the gold to give a bearish breakout from the 3-month support trend line. As we recommended in the article from August 18th, until the metal breaks the open high strategy at $1,303.50, it has made a low at $1,287.60. On the down side, it has strong support at $1,284 (200DSma) below this. $1,280 is the trend change level towards $1,275, $1,270 $1,265, and $1,261 levels. The Quantitative easing will end this October and the Federal Reserve is going to raise the interest rates quite soon. This provides a pessimism towards gold. The heavenly bids didn't find support the gold at the lower levels too.
A daily close below $1,284, open gates for $1,270 and $1,265. - Pending
A weekly close below $1,292, the short-term turns down. - Pending
In today's session, the metal opened higher again at the $1,291.30 levels. Until the metal breaches $1,291.50, sellers will mint the money.
For an hourly trading perspective, the metal prices are closed below and trading below the 12ema. Until the prices close below the $1,294, the hourly trading will give money only for sellers.
Resistance $1,294, $1,297, and $1,3.
Sell until it trades below $1,294.
The material has been provided by InstaForex Company - www.instaforex.com
