| Jan 31, 2013 08:51AM GMT |
Gold saw a renewed interest on Wednesday’s session following Fed’s fairly dovish remarks and a disappointing US GDP fuelling expectations for further easing, with the precious metal ending the day up $46. At 1.676 at the time of writing, the jostling for position between the bulls and bears continues.
With the outlook for the market on the upside, we expect the bulls to push gold higher all the way to the upper limit of the recent consolidation area 1652-1700. A breakout above that level would reinforce the bullish bias and open the way to next key resistance levels at 1736 and 1754.
Key support level for the bulls to watch sits at 1652. Traders have a lot to absorb on the economic data front today with the German CPI highlighting the calendar during European hours. Later today, eyes will be on the US Employment Cost Index and US Chicago PMI.
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