By Fast Brokers – Gold has surged past its downtrend line running through March 17 highs, or the 1133/oz area. Hence, the precious metal could have some more near-term topside momentum left in it. Although, gold must now deal with 3/18 highs. Gold is reacting positively to encouraging manufacturing PMI data from around the globe. While China, Japan, and the UK all met expectations, the U.S. impressed. Hence, the risk trade has received a boost, a positive development for Gold due to its usual negative correlation with the Greenback. The Cable, Aussie and EUR/USD are all logging solid gains, creating a conductive environment for Gold’s new uptrend. Now attention will turn to tomorrow’s key U.S. employment data. The U.S. will release Non-Farm Employment Change and headline Unemployment Rate figures tomorrow despite a banking holiday. Hence, tomorrow prove to be a volatile trading session due to the combination of key fundamental data and light volume as many investors take off for a 3-day weekend.
Technically speaking, gold faces topside technical barriers in the form of intraday, 3/18, and 3/17 highs. As for the downside, gold has fresh uptrend lines serving as technical cushions along with 3/18 and intraday lows.
Present Price: $1126.50/oz
Resistances: $1127.28/oz, $1128.49/oz, $1129.19/oz, $1130.19/oz, $1130.99/oz
Supports: $1126.28/oz, $1125.18/oz, $1124.28/oz, $1123.08/oz, $1121.67/oz, $1120.77/oz
Psychological: $1100/oz, March highs and lows
(click chart to enlarge)
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