By Fast Brokers – Gold is having trouble breaking through its psychological $1250/oz level, yet is piecing together a solid period of consolidation well above its highly psychological $1200/oz area. Consolidation in gold is understandable and welcome considering the rally which has taken place so far this month. Stability in gold today as the risk trade pops supports the concept that the precious metal can still exercise its negative correlation with the greenback. That being said, gold is still in a sweet spot so long as investor anxiety continues regarding the stability of the EU. Hence, investors should keep a sharp eye on the news wire for any new psychological developments. The data wire will pick back up again tomorrow with the UK, EU, and U.S. each printed a data point of significance. Hence, this calm beginning to the weak could dissipate should the data stray from analyst expectations.
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: $1236.45/ oz
Resistances: $1236.76/oz, $1239.51/oz, $1242.01/oz, $1244.32/oz, $1249.04/oz
Supports: $1232.16/oz, $1229.34/oz, $1225.82/oz, $1223.56/oz, $1219.26/oz
Psychological: $1250/oz, $1200/oz
Market Commentary provided by Fast Brokers.
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