By Fast Brokers – Gold has dipped below its highly psychological $1200/oz level as investors continue to lock in profits. Though one would anticipate a strong performance from gold due to yesterday’s downturn in the risk trade, we wouldn’t take gold’s pullback too seriously at this point since the precious metal has been on such an impressive run. Hence, we’re taking the movement as healthy profit taking and we wouldn’t be surprised to see $1200/oz turn into a key near-term battle ground. Meanwhile, investors should keep a close eye on the EUR/USD and Cable, which have both been incredibly volatile over the past 24-hours. Immense psychological forces are at work and gold is subject to wild market movements should the tide in the risk trade move in either direction. We’ll receive some key data points from Japan, the UK and U.S. tomorrow, though attention will likely remain focused on the EU as leaders volley over the details pertaining to its $1 trillion rescue package.
Technically speaking, gold faces technical barriers in the form of intraday and 5/18 highs. As for the downside, gold still has multiple uptrend lines serving as technical cushions along with 5/10 lows and the highly psychological $1200/oz area.
Present Price: $1197.12/ oz
Resistances: $1199.30/oz, $1202.59/oz, $1205.26/oz, $1208.07/oz, $1211.57/oz
Supports: $1195.20/oz, $1191.33/oz, $1187.10/oz, $1183.52/oz, $1178.97/oz
Psychological: $1250/oz, $1200/oz
Market Commentary provided by Fast Brokers.
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