14 September, AtoZForex.com, Singapore — Gold declines for third straight week. Prices had a third straight week of declines, dropping to a fresh four-week low of 1,099, down more than 1.7%, in mid-morning U.S. trading Friday.
Technical selling pressure, including sell stop orders being triggered had prices falling below the key 1,100.00 level, which could see gold retesting support at $1,080 in the near-term. Trending lower for the past three weeks, chart posture for the yellow metal is described as mixed.
As the markets only care about one thing: the Federal Open Market Committee (FOMC) meeting, traders should be looking at taking defensive measures in the near term.
Gold prices were lower on Friday, moving within a tight $7 range (trading not far above its two-week lows), as selling on this day stems from bearish outside markets and a continued negative near-term chart posture. Traded with slight negativity, price wavered between 1,099 and 1,113, with the continual of a bearish technical pattern. In fact, the precious complex remains a very low participation market as investors are not looking to make major commitments in gold ahead of the FOMC policy statement this Wednesday. As such the negative scenario will remain valid and active for the near term.
Gold was under pressure on Friday during London and New York hours following quiet Asian trade. New York offers sent the metal briefly below 1,100, however solid bids around the figure limited the down-side damage to a low print 1,099. Afternoon trade in New York saw the metal climb back to a close of 1,108.10, around -0.4% down for the session. Noting that price has now fall to a one-month low, we are under the encouragement to continue suggesting the bearish trend. Expected trading range for today is between 1,100 support and 1,113 resistance.
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