Gold

Gold: Gold prices moved dramatically on 18 September in response to the Fed's unexpected announcement of no QE tapering. Gold recorded its largest one-day price rise since June 2012. The Fed announcement surprised many and forced a short-covering rally. Previously the technical picture looked bearish for gold, but this strong bounce is challenging that view. Key resistance levels are around US$1,400/oz and then US$1,433/oz. A break above the latter would be a key signal to suggest the trend is turning higher. StanChart believe that the physical market will be supportive heading into year-end. Indian imports tumbled below 5 tonnes in Aug, but should strengthen in the weeks ahead owing to key festivals and the wedding season. House look for gold prices to trend higher from here.