FX.co ★ Forecast of Gold for August 01, 2014

The yellow metal was pushed towards a 6-week low. Traders raised their bets in the US economy that it will grow at a faster pace. The US dollar was strengthened by the GDP data, fuelled by the optimism in the US economy. The metal hit the 50DSma at $1,295 and 200DSma at $1,287 in yesterday's session, closed below these levels. In today's Asian session the pair is facing strong resistance at 200DSma $1,286.50, made a high at $1,284.50. The 61.8 fib level saved the metal from drifting back to much lower.

Resistance $1,286.50 $1,294 $1,300

Support $1,280 $1,276 $1,270

Hourly trading cmp $1,283.20

The metal is trading below the 21HrSma $1,296, 34HrSma $1,297 and 12ema $1,290 levels, prices closed below these levels. Until the price trades below 21HrSma and 34HrSma, the hourly trading favors bears.

We recommend a safe buy only above $1,290 for $1,293, $1,295 and $1,297. Strong momentum is only above $1,298 towards $1,300, $1,302 and $1,303.50 levels.

Support $1,279.50 $1,275 $1,272

Positional- Below $1,280, it will fall up to $1,275, $1,273, $1,267, $1,260 and $1,258 within strong support at $1,268.