During Tuesday’s trading session gold futures for delivery in June traded within the range $1 297.20-$1 314.70 and closed at $1 310.10.
At 10:55 GMT today gold futures for settlement in June traded little changed at $1 309.50 per troy ounce, adding 0.03% for the day. The contract touched a daily high at 1 314.30 at 05:40 GMT.
Fundamental view
Investors’ attention is now focused on the minutes from the March 18-19 Fed policy meeting, due to be released at 18:00 GMT today. The Federal Open Market Committee, which cut monthly asset purchases by $10 billion at each of its past three meetings, is set to reconvene at the end of the month.
Renewed tensions in Ukraine increased demand for the precious metal as a store of value. Yesterday, pro-Russian protesters seized arms in one city in eastern Ukraine, while declaring a separatist republic in another, a move which Kiev said was a replay of the events that preceded the annexation of Crimea last month. Kiev’s pro-European government attributed the seizure of public buildings as part of Moscow’s plan to justify an invasion in eastern Ukraine.
The US Secretary of State John Kerry blamed Russian forces and special agents for spurring separatist moods in eastern Ukraine, hinting that Russian President Vladimir Putin might be preparing for military action as he did on the Crimean peninsula.
Technical view
According to Binary Tribune’s daily analysis, in case gold price manages to breach the first resistance level at $1 317.45 per troy ounce, it will probably continue up to test $1 324.83 per troy ounce. In case the second key resistance is broken, the precious metal will probably attempt to advance to $1 334.97 an ounce.
If gold price manages to breach the first key support at $1 299.96 per troy ounce, it will probably continue to slide and test $1 289.83. With this second key support broken, the movement to the downside will probably continue to $1 282.47 an ounce.