By Fast Brokers – Gold is continuing its retracement from $1200/oz even as the risk trade weakens again. We’re still accounting present weakness in gold to profit taking and should uncertainty take hold of the EU again we wouldn’t be surprised to see the precious metal shoot back above $1200/oz. Regardless, gold is beginning to test some stronger near-term technical supports and it will be interesting to see how the precious metal behaves over the next 24 hours. Meanwhile, investors will be assessing weekly U.S. unemployment claims and the Philly index as well as monitoring conditions in the EU. The show of unity has dissipated in the EU since the announcement of its $1 trillion rescue package, putting investors on edge as they wait for the next hat to drop. Governmental leaders are trying to sell the rescue package to their constituents, but with little success at this point. The EU and UK will each release key data tomorrow, meaning the trading week could end on a volatile note.
Technically speaking, gold faces technical barriers in the form of intraday and 5/7 highs. As for the downside, gold still has multiple uptrend lines serving as technical cushions along with 5/6 and 5/5 lows.
Present Price: $1184.62/ oz
Resistances: $1187.10/oz, $1191.33/oz, $1195.20/oz, $1199.30/oz, $1202.59/oz
Supports: $1183.52/oz, $1178.97/oz, $1174.76/oz, $1171.60/oz, $1168.80/oz
Psychological: $1200/oz
Market Commentary provided by Fast Brokers.
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