Gold range is at risk amid Bernanke testimony, Fed’s beige book

 Fundamental Outlook for gold: neutral Trade is modest fixed gold at the end of this week with the precious 0.59% by the close of trade Friday ahead. Prices remained largely within a clearly defined range almost nine weeks now when participants try to assess market with gold of seemingly broad risk-weighted assets since the end of June to track future monetary policy by global central banks. Gold bars of the 20-tägige correlation with the S & P-500 has currently highest reached since November 2010 is 0.72 and the metal likely to cope with current range as markets continue to growing concern over global growth prospects.
On Wednesday, the FOMC Protocol offered added little hope for investors who eagerly greater calls expect additional financial support were. In fact continue to the majority in the Committee little room for one more large-scale asset program with the minutes revealed that only "a few members said, more impulse would probably be needed." As the fresh batch of the Central Bank the chance for QE3 dampens rhetoric increased the displacement of the policy Outlook the attractiveness of the dollar, which will limit expected to be substantial progress in the gold price in the meantime. A look at the next week, dealers will loans be a great ear for remarks by Federal Reserve Chairman Ben Bernanke, he before Bank Committee on Tuesday and the House witnessed financial services Committee on Wednesday. However, investors may overlook Bernanke notes before the Fed beige book, which is scheduled for publication on Thursday at 1800GMT and maybe we see the twelve districts after positive assessment of last month highlight improvements in the Fed further continuing the report. However, if the report shows added to signs of strains on economic activity, was speculation for further relaxation of the Central Bank keep gold prices well supported as the call for the yellow metal as a store of value increases prosperity.
From a technical perspective, gold is in the consolidation of the last nine weeks remained, as prices in the apex of the triangle formation within the range between 38.2% and 61.8% Fibonacci extensions, that September and February of highs at $1640 to $1545 or taken to consolidate. Break below the 61.8% enlargement succeeding eyes land at $1500 and the mouth of July 2011 lows and 78.6% extension at $1480. interim resistance is at $1600 with a break on the heights in relief of 1625 in the short term more downside pressure July. In other words, we break out the several months range neutral remain at these levels until one. -MB