By Fast Brokers – Gold is adding onto Friday’s gains after the precious metal popped back above its highly psychological $1100/oz level in the wake of an EU agreement concerning potential financial aid for Greece. Gold followed positive risk trade money flows, indicating the precious metal’s negative correlation with the Dollar is in full-effect. That being said, investors should remain on the cautious side since both the EUR/USD and Cable still face key technical barriers, mostly notably their psychological 1.35 and 1.50 levels, respectively. Hence, investors should keep tabs on the major Dollar pairs along with their interactions with important technical levels. Although the data wire is quiet today, the flow will pick up tomorrow with Final GDP and HPI data from the UK followed by U.S. CB Consumer Confidence. However, attention is focused on Wednesdays ADP employment number followed by Friday’s headline employment change figure. That being said, activity in gold and the FX markets could pick up as the week progresses. Meanwhile, it will be interesting to see gold can continue to build off of last week’s bottom and hold above its highly psychological $1100/oz level.
Technically speaking, gold has multiple downtrend lines serving as technical barriers along with intraday and 3/19 highs. As for the downside, gold now has multiple uptrend line serving as technical cushions intraday and 3/23 lows. Additionally, the $1100/oz level could continue to have an influence on price over the near-term.
Present Price: $1110.40/oz
Resistances: $1111.28/oz, $1112.31/oz, $1113.75/oz, $1114.66/oz, $1115.46/oz, $1117.07/oz
Supports: $1109.95/oz, $1109.25/oz, $1108.13/oz, $1106.84/oz, $1105.24/oz, $1103.64/oz
Psychological: $1100/oz, March lows
(click chart to enlarge)
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