By Fast Brokers – Gold has blown past December 2009 levels, setting new record highs as anticipated. Everybody seems to be jumping on the bandwagon as gold’s rise garners global attention. While we would normally assume this would mean a top is approaching, abnormal issues in the EU have created an environment beneficial for gold with the precious metal benefitting from a win-win position. However, should uncertainty surrounding the EU manage to calm to a reasonable level, this could take some of the jazz out of gold’s upward momentum. Regardless, gold’s rapid ascent from March lows has been impressive, to say the least. The data wire will be relatively quiet tomorrow and the EU will take off for a banking holiday, meaning current trends should remain intact over the next 24-hours barring an unforeseen psychological event.
Technically speaking, gold faces technical barriers in the form of intraday highs and the psychological $1250/oz area. As for the downside, gold has multiple uptrend lines serving as technical cushions along with intraday lows and the highly psychological $1200/oz area. Gold has run out of meaningful technical barriers, normally a positive sign concerning near to medium term performance.
Present Price: $1240.13/ oz
Resistances: $1244.32/oz
Supports: $1236.76/oz, $1232.64/oz, $1227.49/oz, $1225.88/oz, $1223.58/oz, $1219.26/oz
Psychological: $1250/oz, $1200/oz
(click chart to enlarge)
Market Commentary provided by Fast Brokers.
Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regarded neither as an investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.
Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.
