$1675 Seen Supportive of Gold Prices (GLD) (IAU) (SLV)

December 10, 2012 3:57 PM EST
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Gold prices edged up to $1710 on Monday, a few days ahead of this week's key Federal Open market Committee rate decision on Wednesday, which will be followed by a press conference by Chairman Ben Bernanke.

Gold traders will likely hone in on comments related its $45 billion per month Operation Twist, which is set to expire. While most investors aren't expecting a change in the size or shape of the program, comments by Fed official last week opened the door to conversion to outright purchases, albeit on a smaller scale. Watchers are also hoping to get more clarity on Fed targets for employment and inflation.

The Fed announcement is sure to move gold prices. In the meantime, gold traders are focused on technical factors. On the downside, $1675 is setting up as key support.

Analyst Ashish Kyal of Waves Strategy Advisors said, "As long as this support is protected our bias is positive and prices could head higher till the next resistance of 1715/1720 levels in the coming trading sessions."

Once $1720 is cleared, Gold bulls could test resistance at $1750, which would open the door for another fight at major $1800 resistance, though for now that battle appears far off.

SPDR Gold Shares ETF (NYSE: GLD) is higher by 0.45 percent on Monday.

iShares Gold Trust ETF (NYSE: IAU) and iShares Silver Trust ETF (NYSE: SLV) are higher by a similar amount.

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