By Fast Brokers – Gold was unable to break through its highly psychological $1150/oz level and the precious metal is back to the $1140/oz area. Conditions in the EU certainly aren’t helping gold’s cause right now. Greek bond yields hit an all-time high as EU budget deficits widen. Uncertainty in the EU has led investors away from the risk trade and towards the dollar, a negative for gold due to correlative forces. U.S. unemployment claims remain above 450k and that isn’t benefitting the risk trade either. Meanwhile, investors are awaiting U.S. existing home sales. If today’s housing data comes in strong this could ebb the risk-averse flows. On the other hand, weak existing home sales could boost the dollar further and weaken gold. The data train will keep on rolling tomorrow with key releases from across the globe, including UK prelim GDP, Germany’s Ifo business climate, and durable goods figures. Additionally, the U.S. will provide new home sales, filling out the housing picture.
Technically speaking, gold has managed to avoid a retest of April 21 highs so far, a positive development for the near-term. Speaking of which, gold has 4/21, 4/20, and 4/19 lows serving as technical cushions along with multiple uptrend lines. As for the topside, gold faces multiple downtrend lines along with the psychological $1150/oz level.
Present Price: $1139.95/ oz
Resistances: $1140.70/oz, $1141.47/oz, $1142.43/oz, $1143.11/oz, $1144.07/oz, $1145.03/oz
Supports: $1139.54/oz, $1138.87/oz, $1138.20/oz, $1137.33/oz, $1135.79/oz, $1134.83/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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