A rise in the US economy brings the Fed December meeting into the limelight. Tomorrow's Fed decision will make more clear future picture for financial markets and gold. The health of the US economy was indicated by the recent economic data such as the jobs market, which is the key factor, and the inflation rate being the major concern.
Ben Bernanke promised to keep interest rates on hold, until the unemployment rate safely lands at 6.5%. If the Fed feels the economy, it should stand on its own, then the tapering news will blow in financial markets.
This year gold prices melted. The January 17 high of $1,295.80 has been the yearly high till now, as we approach the year end, gold is trading near lower levels. The June low is at $1,180.00. This low may change after Fed's decision. One could expect new low somewhere around $1,158.00, $1,125.00-$1,110.00.
In Asia's trading session gold is trading at $1,241.00.
Resistance - $1,258.00, $1,268.00, $1,278.00.
Support - $1,238.00, $1,233.00, $1,218.00.
The close below $1,211.00 makes more bearish ticks on the cards, opens gates to $1,200.00, $1,180.00, $1,160.00.
