By Fast Brokers – Gold is continuing its consolidation just above its highly psychological $1150/oz level as investors digest today’s economic data from China and the U.S. Even though China’s GDP and Industrial Production data was solid, the numbers have had a negligible impact on the Dollar. Meanwhile mixed U.S. data has kept the greenback somewhat range bound so far as well. However, investors should take note that the persistence of high unemployment data should keep the Fed at bay as it pursues a continuation of its loose monetary policy. The Fed’s loose stance is a medium-term positive for the risk trade and gold as well considering the precious metal’s negative correlation with the Dollar. The data wire will be relatively quiet tomorrow until U.S. Building Permits and Prelim Michigan figures, meaning gold and the Dollar could stay locked within their current patterns barring any unforeseen psychological developments.
Technically speaking, gold faces topside technical barriers in the form of intraday, 4/14, 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, 4/13, 4/8,and 4/7 lows. Additionally, the psychological $1150/oz area could continue to serve as solid support over the near-term
Present Price: $1155.40/ oz
Resistances: $1156.63/oz, $1158.47/oz, $1160.01/oz, $1161.83/oz, $1163.38/oz, $1164.65/oz
Supports: $1154.97/oz, $1153.82/oz, $1152.70/oz, $1151.29/oz, $1149.72/oz, $1147.73oz
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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