By Fast Brokers – Gold is marching higher, nearly hitting $1170/oz as the precious metal benefits from today’s pop in the risk trade. The EU’s announcement of financial assistance for Greece has sent the Euro, Cable, and Aussie higher with investor uncertainty abating. Gold has benefitted from its negative Dollar correlation, surging past previous 2010 highs. Gold has been in a win-win situation lately. Investors have fled to the precious metal amid EU uncertainty and are buying up the commodity in reaction to Dollar weakness and correlative forces. Meanwhile, it will be interesting to see whether the EUR/USD can sustain today’s upward momentum and build a solid uptrend. Such a development could prove beneficial for gold due to the reasons listed above. The data wire will be relatively quiet again tomorrow until the U.S. releases its Trade Balance data, meaning present momentums could stay in play unless there is an unexpected psychological development.
Technically speaking, gold faces topside technical barriers in the form of intraday and 12/08 highs. Additionally, the $1170/oz area could serve as a technical barrier should it be tested. As for the downside, gold has fresh uptrend lines serving as technical cushions along with intraday and 4/9 lows. Additionally, the psychological $1160/oz and $1150/oz areas could serve as solid supports over the near-term
Present Price: $1161.55/ oz
Resistances: $1161.91/oz, $1163.20/oz, $1164.77/oz, $1166.21/oz, $1167.50/oz, $1169.22/oz
Supports: $1160.33/oz, $1158.61/oz, $1157.34/oz, $1156.14/oz, $1154.95/oz, $1153.73/oz
Psychological:$1170/oz, $1160/oz, $1150/oz, 2010 highs and April lows
(click chart to enlarge)
Market Commentary provided by Fast Brokers.
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