Gold eased slightly in Asia on Wednesday with investors cautious ahead of next week's Fed meeting.
Gold held steady near a two-week high early on Wednesday, with the prospect of an early U.S. interest rate hike apparently dimming following dovish comments by Federal Reserve chair Janet Yellen earlier this week.
Spot gold XAU= was nearly flat at $1,243.70 an ounce by 0100 GMT. It touched a two-week high of $1,248.40 on Monday.
China's gold reserves were unchanged, at 58.14 million fine troy ounces at the end of May, from the end of April, the central bank said on Tuesday.
Gold prices ended the U.S. say session near unchanged levels Tuesday, amid mild profit-taking pressure and some normal backing and filling on the charts following recent good gains. The gold market bulls still possess the overall near-term technical advantage. That means the path of least resistance for prices in the near term will remain sideways to higher. August Comex gold was last up $0.10 an ounce at $1,247.60. July Comex silver was last down $0.017 at $16.43 an ounce.
Technically, August gold futures prices closed nearer the session high today, on some chart consolidation following recent strong gains. The gold bulls have the overall near-term technical advantage. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,275.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,225.00. First resistance is seen at this week’s high of $1,251.30 and then at $1,260.00. First support is seen at today’s low of $1,236.90 and then at $1,230.00. Wyckoff’s Market Rating: 6.0
Domestic demand for gold nearly halved in May from a year ago and is likely to shrink more this month and the next, as rural India is expected to spend more on sowing of kharif crops and stay away from purchase of the yellow metal.
According to bullion dealers, India imported about 31 tonnes of gold last month—almost half of what was imported in May 2015. Some dealers said demand could drop further.
Reference: Reuters, Kitco, Investing, Economic Times
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