Gold support is at $1,363 and $1,343

Expectations of further quantitative easing by the Fed, continues to dominate precious metals markets. Gold and silver have extended Wednesday’s rallies, with gold achieving yet another record price and silver reaching a 30-year high.

Aggressive investor buying is pushing gold towards the next major resistance level of $1,400. In contrast, the physical market remains weak, with gold scrap availability remaining high. Nevertheless, we anticipate some seasonal jewellery demand (Diwali ends 5 Nov) to prompt some buying into dips.

Gold support is at $1,363 and $1,343. Resistance is at $1,389 and $1,395.

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