The early tapering signals from healthy economic data and the US budget deal make gold prices drop. Yesterday's budget deal made gold prices fall steeply to lower levels. Bears hit gold prices very badly. The US budget deal was reached by congressional Democrats and Republicans. Majority of Republicans supported it. Traders are waiting for today's PPI data and next week's most important Fed meet. The budget deal adds more fuel the rumours regarding early tampering.
Gold is trading at 1,226.
At Asia's trading session, we saw the lowest point this week. Yesterday I penned selling interest rises and indicators showing overbought signs. Currently the indicators signals are mixed.
Support - 1,218, 1,215, 1,210, 1,208, 1,200.
Resistance - 1,234, 1,240.
