Gold is trading at $1290, off $0.5. This is due to profit-taking after the metal surged yesterday, following the new chair of the Federal Reserve reiterating her commitment to the stimulus package. Ms Yellen stated that the bond-buying scheme will continue to be reduced in ‘measured steps’ after the Fed trimmed the quantitative easing programme by $10 billion in both December and January. This reassurance has pushed gold up to its highest level in nearly three months as it is traded in US dollars.
China’s much higher than expected import and export figures released overnight proved that the Asian tiger is still roaring, as Alastair stated yesterday. China has overtaken India as the largest importer of gold in the world.
As stated previously, yesterday’s close above the $1268 level could put us on track towards the $1300 level.