By Fast Brokers – Gold is hovering back around its psychological $1150/oz level in reaction to consolidation in the EUR/USD and GBP/USD. However, gold has gained some nice upward momentum so far this month after separating itself from the highly psychological $1100/oz area. Meanwhile, we notice trend line inflection points approaching in both the EUR/USD and GBP/USD. Hence, despite present inactivity the FX markets could be headed for some volatility. That being said, investors should monitor for any trend-setting movements in the major Dollar crosses, primarily the EUR/USD, GBP/USD, and AUD/USD, while keeping gold’s negative correlation with the Greenback in mind. The Fed will release its Beige Book tomorrow followed by key employment data from Australia during the Asia trading session. Furthermore, we’ve got U.S. Retail Sales and an ECB meeting coming on Thursday. Therefore, activity in the markets could heat up for the first time in 2010.
Technically speaking, gold has multiple uptrend lines serving as technical cushions along with intraday, 1/8, 12/30, and 12/22 lows. Meanwhile, gold’s psychological $1150/oz area could continue to play a role for the near-term. As for the topside, gold faces technical barriers in the form of 12/7 and 11/18, 11/23, and 11/27 highs along with the psychological $1175/oz level.
Present Price: $1147.20/oz
Resistances: $1153.92, $1157.68/oz, $1162.07/oz, $1165.20/oz, $1169.27/oz, $1173.66/oz
Supports: $1146.72/oz, $1143.90/oz, $1138.57/oz, $1134.50/oz, $1130.43/oz, $1126.36/oz
Psychological: $1175/oz, $1150/oz, January and December highs, January lows
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