By Fast Brokers – Gold is moving higher today as the risk trade strengthens across the board. The EUR/USD, GBP/USD, and AUD/USD have all logged solid gains thus far today as investors speculate that the EU will be proactive in dealing with Greece’s fiscal situation. However, speculation is rampant in all directions, making today’s pop in the risk trade a bit circumspect. While the data wire will remain relatively quiet today, news will begin to pick up during tomorrow’s Asia trading session with the release of Australia’s Home Sales data followed by New Loans and Trade Balance numbers from China. Additionally, the BoE will release its Inflation Report accompanied by a public address from Governor King, not to mention UK Manufacturing Production data. Hence, volatility could pick up again as tomorrow’s trading session progresses. Investors should keep a sharp eye on the major Dollar pairs to gauge whether the risk trade is truly undergoing a recovery or whether we are merely witnessing a bounce in the road south. That being said, there’s little reason to believe gold will deviate from its negative correlation with the Dollar. Therefore, all eyes will likely be on activity the Greenback.
Technically speaking, we’ve formed some new uptrend lines which run through levels set last week. Additionally, 2/5 lows and the psychological $1050/oz level could serve as technical cushions. As for the topside, gold faces multiple downtrend lines along with the psychological $1075/oz and $1100/oz levels.
Present Price: $1071.75/oz
Resistances: $1073.95/oz, $1076.61/ oz, $1078.79/oz, $1082.19/oz, $1084.11/oz, $1087.31/oz
Supports: $1070.77/oz, $1067.61/oz, $1065.90/oz, $1062.26/oz, $1058,74/oz
Psychological: $1050/oz, $1075/oz, $1100/oz, February highs and lows
(click chart to enlarge)
Market Commentary provided by Fast Brokers.
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