Gold runs into 5-DMA hurdle again

Gold prices are once again having a hard time pushing through the 5-DMA hurdle of $1315 after having failed to hold above the same on Monday.

Awaits Fed

Fed is not seen moving rates tomorrow, however, if the Fed intends to move rates in December then the ‘dot plot’ chart could drop the hint of the intended move.

Consequently, the buying interest in the metal has been zapped. The metal has retreated from $1353 (Sep 6 high) to $1306 (Sep 16 low) on speculation the bank would raise rates at least once this year.

Gold Technical Levels

The metal was last seen trading around $1315/OZ. Acceptance above $1315 (5-DMA) would open doors for $1320 (July 14 low) and $1324 (10-DMA). On the other hand, a breakdown of support at $1313 could yield a re-test of $1306 (Sep 16 low) and $1300 levels.