28 Oct 2013
Gold u-turns away from 5-week highs
FXstreet.com (London) - Spot Gold has dropped sharply away from 5-week highs where it reached $1,361.74 today.
The yellow metal has bottomed out ahead of key supporting zone of between $1,352 and $1,350. Gold rose initially when investors revived the prospects of an extension of economic stimulus by the Fed while at the same time we are seeing a strong US stock performance that would go hand in hand with the unusual dynamics of QE. “The move higher in the S&P 500 suggests that the market has priced tapering further down the line and we have seen gold on a slightly stronger footing for the first time in weeks”, explained strategist teams at Investec Bank.
The yellow metal has bottomed out ahead of key supporting zone of between $1,352 and $1,350. Gold rose initially when investors revived the prospects of an extension of economic stimulus by the Fed while at the same time we are seeing a strong US stock performance that would go hand in hand with the unusual dynamics of QE. “The move higher in the S&P 500 suggests that the market has priced tapering further down the line and we have seen gold on a slightly stronger footing for the first time in weeks”, explained strategist teams at Investec Bank.