Gold consolidates the strong gains post BoE pre nonfarm payrolls
Gold is consolidating between $1,364 and recent lows of $1,360 as we await tomorrow's US key event in nonfarm payrolls.
Gold rallied from $1,352 as investors seek out safe havens due to global heightened tensions and risks along with a rally in commodities across the board. The BoE was the initial catalyst due to their outlook warnings over the UK economy and subsequent preemptive action taken today when they cut interest rates and added further stimulus.
"As expected the Bank of England (BoE) delivered a substantial easing package today, including a 25bp Bank Rate cut to 0.25%, GBP70bn QE (GBP60bn government bond and GBP10bn corporate bond purchases) and a new Term Funding Scheme (TFS)," explained analysts at Danske Bank.
BoE delivers substantial easing, more in November - Danske
Gold levels
Gold is better bid above the 20 dma at $1,339.26 with $1,310 as key support along the $1,198 ascending support line. $1375 is the double top upside target and a break there opens $1,391 14th March 2014 highs.