Gold Analysis October 31,2013 Trend is Neutral to negative
Gold showed high volitilty yesterday printing lower highs and lower lows. We went short at 1355 yesterday. We updated via twitter to book profit when the price was at 1338.00. Yesterday we discused that price of gold may remain consolidated. We are holding our views for today too.
The Federal Open Market Committee announced“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” .
Technical indicators are not signalling a clear view. On the daily time frame Price of gold failed to close above the Ichimoku clouds MA-20 stands at 1315.81 which will act as a resistance in case of any downward move. MA-5 stands at 1343.96 which attract fresh selling incase of higher prices. Current pattern suggests that bulls are fading.