Gold Stuck in Lackluster Trade; ANZ Tips Support at $1,250/Oz: Dow Jones Gold is in a range in lackluster Asian trading with investors focus remaining fixed on the U.S. budget impasse. Lawmakers in the U.S. have failed to break the deadlock and investors stay cautious ahead of the Oct. 17 deadline to lift the debt ceiling. Meanwhile, Fitch Ratings places U.S. debt on watch for a downgrade as the U.S. Treasury nears a cash crunch. The Chinese are likely to remain buyers as prices have fallen below $1,300/oz, analysts say. Sentiment however remains negative, driven by the continued redemption by ETF (exchange-traded fund) holders, ANZ says in a report. The SPDR gold trust holdings fell by another 1.8 metric tons on Monday to 889.13 tons and ANZ thinks that is the bigger sentiment driver at the moment, it notes. Based on technical indicators, ANZ tips initial support for gold at $1,250/oz, followed by $1,240/oz; it expects rallies to be capped at $1,295/oz. Spot gold is at $1,281.30/oz, down $1.50 from its previous close.
Posted on: Wed, 16 Oct 2013 07:00:00 +0000
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