After having once again failed at the $1,696 resistance level on Wednesday, gold prices headed lower for a third straight session this morning. In the process, the pivotal 200-day moving average price near the $1,608 level was breached by sellers.
The final trading session of the week opened higher in metals as participants continued to bet that Mr. Draghi’s words will translate into action and that the GDP numbers will be the final motivating factor for the Fed to take action next week.
The US dollar and stock index futures frowned upon the GDP estimate and headed lower. The development may give gold players another chance at trying to go for the assault on the $1,660-$1,675 resistance area.
Spot gold fell $19 (1.1%) after the opening bell and was quoted at $1,623.50 the ounce. In the background, the US dollar was up 0.40% at 79.53 on the index and crude oil lost $1.02 to ease to the $102.80 level per barrel.
Yesterday’s “Fedspectations” turned down a notch as market participants had somewhat bigger news this morning; specifically, the story out of China that there has been a sharper-than-expected slow-down in that country’s economy.