Price of gold broke the tight range of 1300-1330 but was unable to stay below this range. Price of gold made a low 1294.80 and quickly bounced back, Price of gold closed lower than opening yesterday.
We are hopeful that Democrats and Republicans will resolve the budget crisis in a decent way to increase the debt ceiling before the deadline.(last time issue was resolved in last few mints and Price of Gold fell from 1920 and is still falling).
So far there is no significant breakthrough but high-level meetings are keeping hopes alive. Honestly, I don’t think that U.S. lawmakers will be stubborn enough to destroy their nation’s economy and reputation.
Minutes from the U.S. Federal Reserve’s September 17-18 policy meeting improved US dollar. Most members of Federal Open Market Committee welcomed the decision of reduction in bond purchasing this year. According to the records, “Most participants viewed their economic projections as broadly consistent with a slowing in the pace of the committee’s purchases of longer-term securities this year and the completion of the program in mid-2014”.
Fibonacci 23.6% level from 1795.75 to 1180.21 stands at 1,325.47. Price of gold is trading below this level. 4-hour time frame shows that price of gold is trading below the Ichimoku cloud. RSI and the MACD have taken a downturn, supporting a negative view. 14-DMA stands at 1318 which will resist in upward movement
Support 1300.00 1291.00 1280.00 1267.00
Resistance 1308.00 1312.00 1318.00 1333.00
we suggest selling gold one lot at 1312 keeping stop loss at 1327. or buying gold at 1391 one lot keeping stop loss at 1381.