By Fast Brokers – Gold has hit by profit taking as investors send the precious metal back to its psychological $1150/oz level after it nearly hit $1170/oz on the heels of the EU’s aid offer to Greece. We are witnessing a bit of risk-aversion across the board as the Dollar appreciates, dragging gold lower with it due to correlative forces. With concerns about Greece abating investors will now turn their attention to U.S. data and earnings. Alcoa started the season off on a low note by missing estimates. Intel will lead the tech sector and investors will also receive Retail Sales and CPI data tomorrow, meaning activity could pick up over the next 24-48 hours. Meanwhile, it will be interesting to see whether gold begins to follow its negative Dollar correlation with EU uncertainty calming. Regardless, gold is still locked into its new uptrend barring a significant technical setback. Meanwhile trend lines are still sitting far off in the distance with a multitude of uptrend lines willing to step in should the precious metal continue to pullback over the near-term.
Technically speaking, gold faces topside technical barriers in the form of intraday, 4/12, 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, 4/8,and 4/7 lows. Additionally, the psychological $1150/oz area could serve as solid supports over the near-term
Present Price: $1149.05/ oz
Resistances: $1149.72/oz, $1151.01/oz, $1152.30/oz, $1153.73/oz, $1154.94/oz, $1156.14/oz
Supports: $1147.57/oz, $1146.57/oz, $1145.57/oz, $1144.47/oz, $1143.42/oz, $1141.55/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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