By Fast Brokers
Gold finally made the bull move investors were waiting for, catapulting from our trend line inflection points while leaving the psychological $950/oz level behind. Though the rise of gold has been incredible over the last 24 hours, movement has come on declining volume, meaning the precious metal could top out soon. Regardless, previous May highs have been broken and a retest of the key $1000/oz seems imminent. Gold’s breakout comes with high flying crude futures, signaling inflation could be on the way. Since gold has exhibited a positive correlation with equities as of late. Therefore, gold’s impressive gains could be signaling a breakout in the S&P futures. Though we’re bullish on gold fundamentally, there are obviously a few more downtrend lines to deal with and $1000/oz, so there could be a rough road ahead.
Fundamentally we find resistances of $975.81/oz, $978.11/oz, $980.56/oz, $983.25/oz and $987.29/oz. To the downside, we see supports of $971.86/oz, $969.29/oz, $965.98/oz, $963.28/oz, and $961.45/oz. Gold is currently trading at $974.90/oz.
Market Commentary provided by Fast Brokers.
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