By Fast Brokers – Gold is easing back from Friday’s highs as the precious metal tried to hold above its highly psychological $1200/oz level. Gold is still in the midst of a key technical battle as investors debate whether to keep the precious metal within the bounds of its medium-term uptrend line or send gold reeling towards a more protracted downturn. Considering investor uncertainty is still sitting at an abnormally high level it currently looks like the bulls will win this battle. Additionally, investors should also remember gold has the potential to lock back into its negative correlation with the greenback should the risk trade continue its broad-based recovery. U.S. earnings season kicks off today, meaning the risk trade could be tested over the next week or two. We’ve also got key data releases from around the globe disbursed through the week meaning markets could be approached a period of volatility. Investors should keep a sharp eye on the FX markets and monitor the ability of the EUR/USD and Cable to hold onto their respective near-term uptrends.
(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.
