Gold Moves Sideways Around $1140/oz.

By Fast Brokers – Gold is holding steady around its psychological $1140/oz area following yesterday’s solid gains.  We notice the risk trade is trending slightly lower across the board today with minimal activity.  This is not surprising considering the lack of data releases and news on the wire.  Hence, gold and the dollar could remain relatively tame today unless there is a psychological development in either the U.S. or EU.  Despite strong earnings from the U.S., uncertainties surrounding Greece and Goldman are keeping the risk trade at bay.  However, the data wire will heat back up tomorrow, meaning activity should pick up as well.  That being said, investors should keep an eye on the dollar’s reaction as data points hit the tape.  The session will be highlighted by EU flash PMI, UK retail sales, and U.S. existing home sales.  Additionally, there remains the potential for psychological events to occur, meaning investors should stay on their toes.

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 levels could continue to 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: $1143.25/ oz
Resistances: $1143.88/oz, $1145.22/oz, $1145.91/oz, $1146.80/oz, $1147.73/oz, $1148.79/oz
Supports: $1142.72/oz, $1141.76/oz, $1140.70/oz, $1139.78/oz, $1138.20/oz, $1137.33/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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