By Fast Brokers – Gold has posted a solid rally from yesterday’s lows as the Dollar rallies across the board, yet has missed a retest of its highly psychological $1150/oz level thus far. Investors dipped back into the risk pool today after news spread that the SEC only votes 3-2 to press charges against Goldman, signaling this may not be the start of a witch hunt. Additionally, the RBA meeting minutes showed that the central bank is still positive on Australia’s economic performance and may not be done with raising rates just yet. This yielded a v-shaped rally in the Aussie, a positive for gold due to its negative correlation with the greenback. Meanwhile, the USD/JPY is bouncing, another positive development for the risk-trade. However, negative momentum is still in play and risk will need a more sizable topside burst to break free. Such an event may not happen tomorrow with the data wire relatively quiet. Although, many psychological forces are floating around and it’s difficult to know where and when they will resurface. Meanwhile, investors should also keep an eye on the news wire for U.S. earnings results.
Technically speaking, gold has multiple uptrend lines serving as technical cushions along with intraday and 4/19 lows. Additionally, the psychological $1140/oz and $1130/oz level could serve as solid psychological supports over the near-term. Speaking of psychologicals, $1150/oz is now serving as a barrier along with intraday highs.
Present Price: $1141.20/ oz
Resistances: $1142.05/oz, $1143.24/oz, $1145.22/oz, $1145.91/oz, $1146.80/oz, $1147.73/oz
Supports: $1140.47/oz, $1139.78/oz, $1138.20/oz, $1137.31/oz, $1136.22/oz, $1135.53/oz
Psychological: $1150/oz, $1140/oz, $1130/oz, April highs and lows
(click chart to enlarge)
Market Commentary provided by Fast Brokers.
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