Sasha Singh
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Gold Crosses 1300, Next Resistance Level 1331.38

(XAUUSD : Daily Chart)

Gold is gaining strength and safe haven status since after the Fed gave an indication that the interest rates are going to be low for foreseeable future. Low interest rate will benefit gold and weaken the dollar. Another factor in rising prices is prevailing tensions in Iraq might impact gasoline prices because of the disruption in oil shipments which as a result might also impact US recovery.

On the Daily Chart, the commodity simply went up breaking the falling resistance trend line after the Fed statement and found resistance today at 1320.40. However it doesn’t seems like it will pause the gains as seen from the perspective of moving averages. The 50 day SMA is also moving towards 200 day SMA trying to move above it. If it will move above, there will be a bullish confirmation and Gold might surge to 1331.38 or 1342.10 levels. If it continues to decline 1305.31 and 100 day SMA would be providing support.