On Tuesday, gold traded above 1,325.00. Moreover, the metal’s price was expected to continue to surge up to the 1,333.67 level. There the metal would meet with the resistance of the second monthly resistance of the simple monthly pivot points.
The surge of the metal was strengthened by supposed rumors that the Federal Reserve might cut interest rates. However, the sharp surge up had started already before the rumors started circulating in the financial media.
In the meantime, the commodity price is overbought, it could first trade sideways and consolidate the recent gains before resuming its move up.
