Gold Spurred after US Economic Growth Cut

The precious metal started bullish as the U.S. Federal reserve lowered their economic growth outlook and also further decided to keep its interests rates at a low. The price for the metal was around $1,281 an ounce. The metal seems very attractive for investors and seems to be a safe haven asset with its support level at $1,275 and resistance at $1,285. Analysts say that the metal will remain bearish for quite some time and it would be good for long term traders.

Investors responded positively to the asset and results of the Crude Oil inventories report was satisfactory although the report showed the oil to be shrinking in its numbers. The past weeks, the crude oil shrunk by -2.6M and this week there was a slight decrease of -0.6M.

The black Gold is bearish despite the light of Iraqi forces battled insurgents north of Baghdad. During today’s opening session, Crude Oil was currently moving around 105.96 a barrel resulting in a downward trend. Analysts say that the crude oil may soon start to climb after situations in Iraq start to stabilize but as the situation worsens the oil will keep moving on a downward trend.