By Fast Brokers – Gold has undergone wild fluctuations over the past 24 hours as bulls bite on weakness. However, the bears are winning out at this point in time as more investors lock in profits after the precious metal set new all-time highs. Regardless, gold does have an impressive support system in place considering its steady rise over the past couple months. Hence, it could be unwise to read too far into gold’s recent downturn as more than a healthy technical development. Meanwhile, the EUR/USD and AUD/USD appear to have hit a roadblock and the Yen is running against the Greenback. Outside of the Cable’s pop the FX markets are sending risk-averse signals, normally a positive for gold. That being said, gold seems to be following its correlation with the risk trade at the moment. However, should global psychologicals take a turn for the worse, this could lead investors back to gold as a safe haven asset. We will have to see how markets react to today’s U.S. data set, including weekly unemployment claims and durable goods orders.
Technically speaking, gold still has multiple uptrend lines at work along with 6/23 and 6/10 lows. Furthermore, the highly psychological $1200/oz level could serve as a solid cushion should it be tested. As for the topside, gold faces technical barriers in the form of 6/23 and 6/28 highs. Additionally, the psychological $1250/oz level continues to serve as a strong technical obstacle.
Present Price: $1228.88/ oz
Supports: $1227.63/oz, $1225.20/oz, $1222.09/oz, $1219.16/oz, $1215.93/oz, $1212.96/oz
Supports: $1230.09/oz, $1233.98/oz, $1237.62/oz, $1240.36/oz, $1242.64/oz, $1244.40/oz
Psychological: $1250/oz, $1200/oz, June highs and lows
(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.
