By Fast Brokers – Gold popped above its highly psychological $1200/oz level and is holding the line today after yesterday’s panic in the U.S. and EU sent investors scurrying towards safety. Gold showed its luster as a safe haven and investors snapped up the precious metal in a hurry, nearly sending it towards a retest of all-time highs. The risk trade is still under pressure today as investor confidence falters, giving gold more topside momentum. However, gold does have to deal with those December 2008 highs and will need another strong boost to climb past it. Meanwhile, investors should be on high alert as it seems activity will remain at an abnormal level with investors on edge. On the other hand, if the G7 can work together to ease uncertainty then this may enable the risk trade to end the week on a solid note. However, it’s tough to get any kind of clear reading at the moment considering the circumstances. Hence, investors should exercise caution and keep an active ye on the news wire.
Technically speaking, intraday and December 2008 highs. As for the downside, gold has multiple uptrend lines serving as technical cushions along with intraday lows and the highly psychological $1200/oz area.
Present Price: $1202.20/ oz
Resistances: $1204.58/oz, $1207.76/oz, $1211.05/oz, $1212.78/oz, $1215.41/oz, $1217.38/oz
Supports: $1202.01/oz, $1200.31/oz, $1196.37/oz, $1194.07/oz, $1192.10/oz, $1188.30/oz
Psychological: $1200/oz, $1175/oz, December 2008 highs
(click chart to enlarge)
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