Gold’s support is at $1,300/oz and a fall below that level could see gold test the next level of support at the $1,180/oz to $1,200/oz mark. Resistance is at $1,400/oz to $1,434/oz level and a breach of resistance should see gold quickly test the $1,500/oz level (see chart above).
Gold is marginally lower in most major currencies despite the near week long U.S. government shutdown which is leading to genuine fears that Congress may struggle to raise the U.S. debt ceiling.
This is burnishing bullion’s safe-haven appeal but that has yet to be reflected in higher prices.
U.S. politicians remain very far apart in ending the first government shutdown in 17 years stoking fears they will not be able to reach a deal to raise the U.S. borrowing limit by October 17 to avoid an unprecedented debt default.