FX.co ★ Gold short betting was increased

Short betting was increased in yellow metal couple of times and longs slipped. Gold lost almost 25% year to date from its 2011 peaks. Speculations increases as the Fed date comes closer. Expectations of Fed tampering of its purchasing program makes gold move southward.

Dip buying and the weakness in USD makes gold fly higher. Gold holdings with SPDR ETF were unchanged at 835.705 tonnes.

In the tech view gold is holding its June lows around 1,180. That day gold opened at 1,200 and managed to close at higher levels, but it hit a low at 1,180. For the last few days, gold managed to hold 1,210 levels and moved towards resistance levels. We can see 1,200 levels as a floor price.

Resistance: 1,268, 1,278.

Support: 1,247, 1,240, 1,233.

Close above 1,278, then the bulls dominate in the short term, until gold trades in tight zones. Cmp 1,254.