Gold Technical Analysis - September 23, 2014

Gold futures settled lower for the second straight session as expectations have risen that the Federal Reserve will reduce monetary stimulus by the end of the year. There were also two large investment banks warned that they see Gold prices potentially moving lower, which also pressured metals prices on Monday. �Prices had been down roughly $14 early Monday but pared losses after an HSBC report showed manufacturing activity at a six-month high in China, one of the world's largest consumers of gold.

On Monday, two investment banks warned that next year is looking pretty dicey for bullion. Citigroup analysts said gold will likely get a short reprieve from the Fed's decision to leave its bond-buying program intact. However, they said prices will push below $1,250 an ounce before the year end, and that's a price they see sticking for next year. In another Monday call, analysts at Morgan Stanley said they expect gold will average $1,200 to $1,350 an ounce in 2014 before heading lower. It was news on Friday that really reversed action in Gold that had many scratching their heads just following Wednesday afternoon's Fed policy statement. St. Louis Fed President James Bullard told Bloomberg Television Friday that there is a small chance of tapering bond purchases at the October FOMC meeting. �Prices on Friday had skidded $36.80, or 2.7%, on Comex.

On Monday, however, two senior Federal Reserve officials expressed disappointment with the pace of the U.S. recovery, with New York Fed President William Dudley saying the economy is too weak for the central bank to pull back its bond-buying program. Data from the Commodity Futures Trading Commission released late Friday showed that speculative traders increased their gross shorts ahead of the Fed announcement. Technical's for the week comes in like this for both December Gold and December Silver. For Gold, support comes in at 1298.2, and below there at 1264.2. Resistance is up at 1370.9, and above there at 1409.4. For December Silver, support comes in at 20.86 and below there at 19.93. Resistance is up at 23.08 and above there at 24.37. Please call or email me with any questions or comments.

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Daily Swing #s GCZ3, Tuesday September 24th

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