By Fast Brokers – Gold is trending higher as the dollar weakens and the risk trade hangs onto its near-term uptrend. Speaking of uptrends, gold is still locked into its consistent uptrend despite Monday’s brisk selloff. As we continue to point out the gold not only serves as a safe haven but also exhibits a negative correlation with the dollar. Therefore, it’s difficult to be negative on gold so long as troubling psychological headwinds circle global markets. Meanwhile, the news wires will heat up later today as the BoE releases its monetary policy meeting minutes followed by a monetary policy decision from the Fed. Even though it’s unlikely either central bank will deviate from their previous stances, statements from central bankers have the ability to stir investors and inject volatility. Hence, it will be interesting to see how gold and major dollar pairs react as the trading session progresses.
Technically speaking, gold has multiple uptrend lines at work as the precious metal eyes its highly psychological $1250/oz level once more. Additionally, gold faces technical barriers in the form of 6/8 and 6/21 highs.
Present Price: $1241.50/ oz
Resistances: $1241.91/oz, $1244.40/oz, $1248/oz, $1251.55/oz, $2155.12/oz, $1260.06/oz
Supports: $1237.38/oz, $1235.75/oz, $1233.98/oz, $1231.35/oz, $1229.56/oz, $1227.63/oz
Psychological: $1250/oz, June highs
(click chart to enlarge)
Market Commentary provided by Fast Brokers.
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