By Fast Brokers – Gold has popped past previous July highs after news hit that Moody’s is downgrade Portugal’s debt by two notches. However, intraday gains are being capped by a relatively successful auction of Greek bonds, encouraging investors that Greece will not default on its debt. Regardless, the Portugal downgrade gives investors uncertainty a bit of a boost and gold is benefitting. Gold seems to have locked back into its uptrend in the process, though we will have to see if the precious metal can get beyond near-term downtrend lines. If not, gold could be in for heavier losses. We tend to err on the side of optimism since gold has shown it can benefit from both good times and bad. Meanwhile, we’ll keep an eye on technicals and gold’s reaction to upcoming data and earnings.
Technically speaking, gold multiple uptrend lines in place and $1200/oz becomes a technical cushion once again. Gold also has technical supports in the form of intraday and 7/7 lows. As for the topside, gold faces technical barriers in the form of 6/1 and 6/30 highs.
Present Price: $1215.75/ oz
Resistances: $1216.85/oz, $1219.35/oz, $1221.01/oz, $1223.52/oz, $1225.55/oz, $1228.03/oz
Supports: $1214.57/oz, $1212.49/oz, $1210.39/oz, $1208.55/oz, $1206.43/oz, $1203.77/oz
Psychological: $1200/oz, July highs and lows
(click chart to enlarge)
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