Gold is holding around Friday’s highs despite an incredible selloff in the Cable and considerable weakness in the EUR/USD. Hence, gold is continuing to deviate from its usual positive correlation with the Euro and Pound and is instead performing relative well amid increasing economic uncertainty in Europe. However, the AUD/USD is performing rather well with investors speculating that the RBA may either raise rates tomorrow or keep the benchmark
Technically speaking, gold faces multiple downtrend lines along with 2/17 and 2/22 highs. Our 3rd tier downtrend line could serve as a key near-term technical since it runs through February highs, or the $1130/oz area. As for the downside, gold has multiple uptrend lines serving as technical cushions along with intraday, 2/26, and 2/25 lows. Furthermore, the psychological $1100/oz level could continue to play an influential role over the near-term.
Present Price: $1116.30/oz
Resistances: $1118.92/oz, $1121.35/oz, $1123.30/oz, $1125.97/ oz, $1128.160/oz, $1130.84/oz
Supports: $1115.03/oz, $1112.60/oz, $1110.41/oz, $1108.22/oz, $1106.18/oz, $1103.10/oz
Psychological: $1100/oz, $1125/oz, February highs and lows
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