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Gold Approaching Key Resistance Trend Line, Global Growth Concern Supporting the Safe Haven

XAUUSD : Daily Chart

Gold continues to rise today on the daily chart supported by a rising support trend line however the gains seems capped as there is a falling resistance trend line which might continue to prevent the commodity in rising further. The immediate resistance for the commodity is at 1257.47 and if it is able to hold gains above this resistance, the next resistance it will find from the falling resistance trend line.

XAUUSD : 4 Hour Chart

On the 4 hour chart, the commodity is following a rising channel pattern and might continue to rise until it decline below the support trend line of the channel.

Fundamentally the commodity might be experiencing an increased seasonal physical demand from India ahead of fall wedding season and major Hindu festival Diwali. India is considered as the second largest consumer of Gold after China. A report showed that the growth in China eased in the third quarter to its weakest level since the 2008/09 financial crises which might have also provided support to the commodity as the concerns over the slowdown in the global economy like Euro zone and China rose.  A delay in rise of interest rates from Fed might also help Gold in surging.