Gold Pops Back Above $1175/oz

Gold has strengthened well from Friday’s selloff, popping back above the psychological $1175/oz level as the EUR/USD and AUD/USD move higher. Investors seeming to be brushing aside the Dubai debt issue, and are reacting by challenging 1100 again in the S&P. Gold is finding comfort in the preference for risk amid an increase in global uncertainty. That being said, there are quite a few key data releases coming from China, the UK, and the U.S. over the next 24 hours which could move the markets. Therefore, gold may be looking to the upcoming fundamental releases before deciding whether to tackle $1200/oz, or submit to recent downside pressure resulting from risk-aversion and profit-taking. Regardless, gold’s impressive uptrend is alive and well with multiple positive technical forces working in its favor.

Gold has quite a few uptrend lines in place and the $1150/oz level could prove to be a technical cushion along with 11/27 and 11/17 lows should they be tested. As for the topside, we’re unable to place a downtrend line until we have a bit more track record to use. Therefore, the $1175 and $1200/oz levels serve as technical barriers along with 11/26 highs. For the time being, investors should monitor the EUR/USD’s interaction with our trend lines along with the S&P’s ability to climb back above 1100. A breakout in either could help boost gold due to correlative forces.

Present Price: $1176.70/oz

Resistances: $1178.54/oz, $1182.37/oz, $1186.5/oz, $1194.82/oz

Supports: $1173.02/oz, $1170.16/oz, $1165.57/oz, $1161.90/oz, $1156.88/oz, $1149.37/oz

Psychological: $1175/oz, $1200/oz, $1150/oz

Gold Sells Off Sharply As Dollar Runs

Gold is finally experiencing a sizable setback after nearly hitting the psychological $1200/oz level. News concerning the restructuring of debt in Dubai has sent a shockwave throughout equity and FX markets, resulting in large selloffs in global equities as well as bullish moves in the Dollar and Yen. In other words, we are witnessing a large risk aversion due to a spike in investor uncertainty, thereby knocking gold from the perch of its bubbly highs. Now that the Dubai news has sunk in, it will be interesting to see how far investors are willing to take the present flight from risk. That being said, investors may want to err on the cautious side considering how far crude fell after its bubble popped last year. Today’s movement is certainly a sizable step back, yet a warranted one considering the bull run that has taken place since the eclipse of $1000/oz.

Meanwhile, gold has quite a few uptrend lines in place and the $1150/oz level could prove to be a technical cushion along with 11/17 lows. As for the topside, we’re unable to place a downtrend line until we have a bit more track record to use. Therefore, the $1175 and $1200/oz level serve as technical barriers along with 11/23 and 11/26 highs. For the time being investors should monitor the EUR/USD’s interaction with our uptrend lines along with the S&P’s ability to mitigate intraday losses. We will certainly monitor the situation closely since today’s volatility could carry over into next week.

Present Price: $1159.60/oz

Resistances: $1161.90/oz, $1167.02/oz, $1170.16/oz, $1173.02/oz, $1178.54/oz, $1182.37/oz

Supports: $1153.65/oz, $1150.09/oz, $1140.16/oz, $1137.60/oz, $1131.63/oz, $1127.36/oz

Psychological: $1175/oz, $1200/oz, $1050/oz

Gold On The Rise Once Again Breaking All Time Highs!!!

The U.S. dollar plummeted throughout yesterday's trading session, reaching its lowest against the Japanese yen in nearly 14 years, at a time it fell against a basket of foreign currencies. However, the major drop influenced gold to clearly rise and achieve its highest at 1193.40 yesterday, before closing at $1192.10 per ounce in New York by 0.05%. Today, gold continued to appreciate to record its highest at 1195.00 before slightly dropping.

The major spike gold witnessed was something no one could have dreamt of in previous years, but with the credit crisis and economic recession the global economy has been facing; pushed investors towards gold as a safe haven and when the global economy exited the recession, the dollar plunged in the a sharp bearish wave, thus increasing gold's attractiveness for investors, traders and central banks around the world; therefore causing it to spike.

Nonetheless, the rise in markets was not limited to gold only; stock indices rose yesterday alongside the spike in European stock indices. We also witnessed a rise in commodity indices; the S&P GSCI index gained by 12.88 points and closed at 514.74 points in NY, appreciating alongside altitudes, tools and energy commodities; whereas the RJ/CRB COMMODITY index gained by 6.15 points due to precious metals overall appreciation.

Meanwhile, platinum closed on highs yesterday by 1.80% at the same time as silver gained by 2.00%, where platinum closed at 1473.00 and silver at $18.84 per ounce for each of them. This spike precious metals witnessed was less than what gold faced, which signifies that there are non-speculative powers in the gold market where gold is requested as a safe haven.

Today at precisely 02:23 EST; precious metals witnessed a drop which arose due to existing fears within financial markets that China will take real steps to put a stop to the excessive growth in the economy, specifically the industrial sector, fearing a bubble forming in the economy.

Meanwhile, gold depreciated today trading at 1186.00; whereas silver traded at 18.60, which was the lowest witnessed between the three precious metals, assuring that the power behind these profit-taking operations are speculative; silver dropped by 1.27%. However, platinum fell by 0.41% to trade at 1467.00.

Chances of witnessing gold appreciate more prevails, in conjunction with the dollar sharp plummet; where these levels near the psychological block at $1200 per ounce, where we could see corrections and sharp trades if the medium term remains to the upside, especially since commodity and price bubbles have started to form around the world in correlation with crude stabilizing above $75; all of which benefit gold's rising glory.

Gold Is On The Rise Despite Current Conditions

Precious metals dropped throughout yesterday's trading session at a time U.S. and European stock indices declined, alongside crude witnessing a fall yesterday. Silver managed to drop by 0.59% to close trades at 18.47 in New York; whereas platinum followed by dropping 0.55% to close yesterday in New York at 1447.00; meanwhile, gold persisted on finish off trading with gains by 0.35% to close at $1168.20 per ounce.

Meanwhile, precious metals today rose (precisely at 02:44 EST); where gold is trading at 1177.20 rising by 0.77%, and setting a new all time high; silver, on the other hand, compensated its loss yesterday by appreciating today by 1.25% to trade at 18.70; meanwhile, platinum is trading with gains by 0.69% at $1457.00 per ounce.

However, crude's drop throughout yesterday's trading session did not force gold to close on a low in New York; whereas today the dollar's plummet and crude's rise helped gold maintain its bullish trend. Also, the fed yesterday stated that for the first time extremely low interests rates could be behind the uncertainty in inflationary levels, where expectations regarding inflation are uncertain; therefore, pushing gold to ascend and at the same time attracting more investors towards gold as a safe haven. Nonetheless, U.S. consumer confidence notably rose and opposed expectations for a possible drop due to a demand wave for gold; although the continuous rise of consumer confidence could cause overall demand on precious metals.

Presently, worries are set on the slow pace in growth in the U.S. economy, in addition to suffering from a possible return of instability that would harm commodity prices, however, it does provide expectations of a drop in consumer demand on essential commodities, thus leading to commodity indices' depreciating yesterday; the S&P GSCI index plummeted and closed by 8.41 points, where it helped in raising oil inventory; whereas the RJ/CRB COMMODITY index witnessed a drop by 2.69 points and closed at 272.26, where non-gold precious metals played a major role in the index's plummet.

The U.S. economy managed to expand by 2.8% throughout the third quarter, but growth was revised lower from the initial estimate of 3.5%. On the other hand, we see that Japanese exports dropped the least in a year, despite of the improvement seen in the Merchandise trade balance, worries were focused on the banking sector.

All these facts make us expect gold to appreciate, whereas other precious metals are facing volatile fluctuations. The rise we still predict for gold is set over the medium term, since current gold prices are high and could trigger volatility and profit-taking waves every once in while. However, the initial target at $1300 per ounce, compared to current demand and medium term expectations.

Gold Rockets Towards $1175/oz

Gold is consolidating along our 3rd tier uptrend line as the S&P futures bobble around 1100 and the EUR/USD fluctuates between trend lines. The reaction to today’s U.S. GDP and Consumer Confidence releases have been relatively quiet thus far, implying that activity may be winding down in advance to the Thanksgiving holiday. Gold has responded by holding onto yesterday’s impressive gains towards $1170/oz on the heels of more dovish comments from Fed officials. That being said, the Fed will release its Meeting Minutes this afternoon PST. If the Fed’s minutes further support extending loose monetary policies, then it will be interesting to see whether the gold responds with another surge higher as investors and central banks divest from the Dollar. Meanwhile, investors will receive some key U.S. and EU data points tomorrow, meaning the markets could experience a slight jolt of activity before Thanksgiving Day. Therefore, investors should continue to eye the EUR/USD’s present interaction with our trend lines and its highly psychological 1.50 level since the currency pair is normally positively correlated with gold.

Technically speaking, we’re unable to place any notable topside barriers or downtrend lines on our chart due to the lack of historical perspective. Therefore, the psychological $1175/oz and $1200/oz levels appear to be the only topside technicals at work for the time being. As for the downside, we continue to move our multiple uptrend lines higher while 11/20 lows and the psychological $1150/oz level serve as technical cushions.

Present Price: $1167.20/oz

Resistances: $1170.16/oz, $1173.02/oz

Supports: $1163.85/oz, $1160.69/oz, $1152.65/oz, $1150.09/oz, $1139.50/oz, $1132.01/oz

Psychological: $1175/oz, $1200/oz, $1050/oz

Gold Strikes Another Record High On Inflation And Economic Woes

Gold defied a rebound in the dollar on Monday and powered to a record on safe-haven buying, driven by growing worries about inflation and a drop in U.S. stocks that stirred doubt about the economic outlook. Bullion, which has gained around 32 percent so far in 2009, struck a succession of lifetime highs in November as sentiment turned extremely bullish after India acquired 200 tons of the precious metal from the International Monetary Fund. 'You've got more high profile hedge funds visibly investing in gold. That's yet another factor encouraging moves into gold by the wider investor community,' said David Barclay, commodity strategist at Standard Chartered in Hong Kong. Gold is trading at $1,166 as of 8:36am, GMT with a bullish trend. Gold's Pool-position is 87% Long, meaning that most Finotec clients are buying the precious metal.

Gold Consolidates Around $1140/oz with Broad-Based Dollar Strength

Gold is finally experiencing a period of consolidation following its incessant rise to $1150/oz. Gold is consolidating around the $1140/oz level, right along our 3rd tier uptrend lien while setting lower highs in the process. Gold’s weakness comes in reaction to pullbacks in the EUR/USD, AUD/USD, and GBP/USD. Additionally, the S&P futures have ducked back below their highly psychological 1100 level. All of these correlative forces are trimming gains and gold and allowing bulls to take a breather as investors closely monitor recent uncertainty in the FX markets. That being said, despite heavy losses in the Cable, the EUR/USD and AUD/USD have experienced what could be considered healthy pullbacks at this point. However, should losses in these currency pairs accelerate investors could opt to take further profits in gold since the precious metal tends to exert a negative correlation with the Dollar. After all, some sizable profit taking in gold wouldn’t be abnormal because it has been on a tear since breaking through $1100/oz.
Meanwhile, investors are eagerly awaiting next week’s economic data, most notably housing data and U.S. Prelim GDP on Tuesday. Should global econ data continue to disappoint, investors may choose to divest from riskier assets including gold since it tends to be negatively correlated with the Dollar and positively correlated with the S&P futures.
Technically speaking, we’re still hesitant to place a downtrend line on gold until we witness further consolidation/profit-taking. That being said, gold’s psychological $1150/oz continues to serve as the only viable topside technical due to the lack of historical perspective. As for the downside, gold has multiple uptrend lines serving as technical cushions along with 11/16 lows and the psychological $1100/oz level should conditions deteriorate over the near-term.

Present Price: $1139.20/oz

Resistances: $1143.05/oz, $1145.61/oz, $1150.09oz, $1152.65/oz

Supports: $1137.60/oz, $1134.71/oz, $1130.54/oz, $1127.24/oz, $1123.51/oz, $1118.39/oz

Psychological: $1150/oz, $1100/oz

Gold Touches Fresh Dollar High as Inflation Rises, Housing Stalls

December gold futures closed up $4.60 at $1,144.00 yesterday. Prices hit another fresh contract and all-time record high yesterday, amid a weaker U.S. dollar. Prices closed near mid-range. Gold bulls have the solid overall near-term technical advantage. There are no early clues of a market top being close at hand for gold. Gold bulls' next upside price objective is to produce a close above solid technical resistance at $1,200.00. Bears' next downside price objective is closing prices below solid technical support at $1,100.00. First resistance is seen at yesterday's all-time high of $1,153.40 and then at $1,160.00. Support is seen at yesterday's low of $1,136.00 and then at $1,130.00.

Gold Hits Psychological $1150/oz Level

Gold is continuing its incessant rise higher despite very limited participation from the Dollar. The EUR/USD and AUD/USD are both fluctuating between their respective uptrend and downtrend lines while the S&P futures hover around their highly psychological 1100 level. Gold has ignored its usual positive correlations since breaking through its psychological $1100/oz level and seems to have a mind of its own. Gold’s aggressive bull movements without a sizable depreciation of the Dollar is a bit puzzling. Therefore, investors should question if/and when gold’s correlations will lock back into place.

Meanwhile, U.S. equities have held up well considering the continual wave of negatively mixed econ data. Despite today’s slightly positive CPI numbers, both Building Permits and Housing Starts registered disconcerting declines. Therefore, America’s recent fundamentals are indicating a cool down in the nation’s economic recovery. Hence, the S&P’s resilience above its highly psychological 1100 level has been impressive. However, it feels like something’s got to give and investors will eventually need to favor one direction or another in U.S. equities and the Dollar. Investors should closely monitor the EUR/USD, GBP/USD, and AUD/USD for a directional statement since gold has been more closely correlated to the Dollar than equities so far this year.

Technically speaking, we’re still unable to install a downtrend line on our chart due to a lack of historical perspective. Therefore, it’s difficult to find any topside technical barriers besides gold’s potentially psychological $1150/oz level. As for the downside, gold has multiple uptrend lines serving as technical cushions along with 11/17 and 11/16 lows along with the psychological $1100/oz level.

Present Price: $1147.70/oz

Resistances: $1150.09oz, $1152.65/oz

Supports: $1143.05/oz, $1137.60/oz, $1134.71/oz, $1130.54/oz, $1127.24/oz, $1124.27/oz

Psychological: $1150/oz, $1100/oz

Gold Trades Lower as Dollar Gains

Gold is pulling back from intraday highs after trading at new record levels just above $1140/oz. Present weakness stems from a combination of profit taking and broad-based strength in the Dollar. However, despite today’s slight pullback, there remains little reason to be technically negative on gold due to the lack of historical perspective to the topside. Investors would likely need to witness significant strength in the Dollar in order to make a noteworthy dent in gold. After all, gold has proven to be more closely correlated to the Dollar than U.S. equities. Therefore, investors should keep an eye on current weakness in the EUR/USD and AUD/USD and monitor whether any key supports are taken out in these currency pairs.

Meanwhile, U.S. economic data continues to print negatively mixed, including today’s disappointing PPI data. The disappointing Core PPI number further supports the Fed’s plan to maintain its loose monetary policy for the foreseeable future. The Fed’s dovish attitude implies the continuation of a broad-based weakness in the Dollar. Therefore, gold’s downside movements have been limited today, and the potential for further near-term gains remains.

Technically speaking, we’re still unable to install a downtrend line on our chart due to a lack of historical perspective. Therefore, it’s difficult to find any topside technical barriers besides gold’s potentially psychological $1150/oz level. As for the downside, gold has multiple uptrend lines serving as technical cushions along with 11.16 lows and the psychological $1100/oz level.

Present Price: $1131.95/oz

Resistances: $1134.71/oz, $1138.63/oz, $1143.16/oz

Supports: $1127.24/oz, $1124.42/oz, $1122.54/oz, $1117.87/oz, $1114.39/oz, $1111.49/oz

Psychological: $1100/oz., $1150/oz.

Gold Rises To Another Record High At $1,118 As The Dollar Continues Its Descent

Gold hit a record high of $1,118 an ounce on Wednesday, stirred by renewed buying the precious should benefit from expectations that an erratic economic recovery will keep U.S. interest rates low. The metal is now poised for more gains, analysts said, with the weak dollar helping gold build on a rally that began last week after the IMF sold 200 tons of bullion to India's central bank, raising the prospect of more official sector buying. The greenback index initially fell a quarter of a percent to a 15 month low and the euro rose to a two-week peak within sight of last month's high of just over $1.5060. Gold is trading at $1,117 as of 21:08pm, GMT with a bullish trend. Gold's Pool-position is 70% Long, meaning that most Finotec clients are buying the precious metal.

Gold Retraces to $1100/oz

Gold is continuing its charge above $1100/oz after both China and Japan’s economic data outperformed analyst expectations. In addition to positive data flows from the Far East, investors received a couple statements from Fed officials yesterday that further supported the outlook that the central bank will keep its loose monetary policy intact for the foreseeable future. The combination of these developments has resulted in Dollar weakness and topside movements in gold. Despite yesterday’s retracement to $1100/oz, gold has once again shown a preference for its incredible uptrend. Although another $1100/oz retracement may not be out of the question, gold’s topside separation is certainly encouraging for bulls. Meanwhile, investors should continue to keep an eye on the EUR/USD’s interaction with 1.50 as well as the AUD/USD’s ability to create some topside separation from its October highs. Gold has been more closely correlated with these two major Dollar crosses, meaning any significant movements would likely impact the precious metal.

Technically speaking, the only topside barrier we’re able to form right now is intraday highs due to a lack of historical perspective. As for the downside, gold has several uptrend lines serving as technical supports along with 11/10 and 11/06 lows. Furthermore, the psychological $1100/oz level should continue to work in gold’s favor should it be tested again.

Present Price: $1116.25/oz

Resistances: $1117.87/oz

Supports: $1110.59/oz, $1107.50/oz, $1104.71/oz, $1100.41/oz, $1097.63/oz, $1093.33/oz

Psychological: $1100/oz.

Gold Retraces to $1100/oz

Gold has retraced to $1100/oz following yesterday’s break above as investors snap up the Dollar in reaction to overbought conditions and disappointing econ data points from both Britain and the EU. Meanwhile, the S&P futures are staring at their own psychological 1100 level along with previous 2009 highs. Therefore, today’s consolidation appears healthy thus far as investors take a breather in anticipation of tonight’s wave of econ data from China. China will release Industrial Production, CPI, CPI, and Fixed Asset Investments. Investors will likely be paying particularly close attention to China’s econ data since the nation’s economy has been an engine in the global recovery. An outperformance in China’s data could give the risk trades a nice boost, whereas a cool down could result in further Dollar strength. Therefore, strong econ data out of China could help gold separate itself from $1100/oz despite today’s retracement. On the other hand, disappointing China data could lead investors to close out some risk trades as well as take profits in gold.

Technically speaking, we’re still unable to place any sort of reliable downtrend line on gold due to a lack of historical perspective. Therefore, gold’s key barrier to further topside gains appears to rest in the hands of the psychological $1100/oz level. As for the downside, gold several uptrend lines serving as technical cushions along with 11/06 lows. Meanwhile, investors should keep an eye on the EUR/USD’s battle with 1.50. Gold has been strongly correlated with the EUR/USD. Therefore, any significant breakout in the currency pair could help drive gold higher.

Present Price: $1101.85/oz

Resistances: $1105.32/oz, $1108.20/oz, $1110.59/oz

Supports: $1100.97/oz, $1097.65/oz, $1094.78/oz, $1091.43/oz, $1087.59/oz

Psychological: $1100/oz, $1075/oz.

Gold Breaks Past $1100/oz

Gold has finally broken past its psychological $1100/oz level after a week-long debate. The precious metal is finding strength from a broad-based weakness in the Dollar as the Aussie, Euro, and Pound all log solid gains against the Greenback. Furthermore, India’s large purchase of IMF bullion is probably increasing speculation that global central banks are beginning to diversify their reserves and decrease their reliance on the Dollar. Gold is a direct beneficiary of such a trend since it is a notorious safe haven asset. Meanwhile, we also notice sizable topside movements in both crude and the S&P futures, indicating today’s activity in Gold’s correlations are all creating an environment supportive of the precious metal’s psychological breakout.

Gold’s near-term reaction should remain reliant on the Dollar’s reaction to upcoming econ data. In focus will be tomorrow’s EU ZEW Economic Sentiment number followed by a wave of Chinese data late Tuesday EST. If tomorrow’s econ releases should impress and the Dollar reacts negatively, gold would likely be a beneficiary, and vice versa. Technically speaking, gold’s movement beyond $1100/oz is another key uptrend statement from the precious metal. Although there’s the possibility gold may retrace towards the upper end of the $1100/oz psychological zone, the precious metal’s technicals are still supportive of its medium-term uptrend. It’s difficult to place too many topside resistances until gold cools down, while the precious metal has multiple uptrend lines along with 11/6 lows serving as technical cushions.

Meanwhile, investors should keep an eye on the EUR/USD’s interaction with its highly psychological 1.50 level along with our 2nd and 3rd tier downtrend lines. Gold has been strongly correlated with the EUR/USD lately, meaning a topside breakout in the Euro could push gold highs, adding more weight to tomorrow’s ZEW data.

Present Price: $1106.80/oz

Resistances: $1108.20/oz, $1110.59/oz

Supports: $1103.64/oz, $1100.97/oz, $1098.11/oz, $1094.78/oz, $1090.71/oz, $1088.55/oz

Psychological: $1100/oz, $1075/oz.

Gold Steps Back after Peaking Past $1100/oz

Gold made a surprise retest of $1100/oz, temporarily peaking over the highly psychological level before retreating back towards $1090/oz. What made gold’s slight pop surprising is the fact that it came in reaction to much weaker than expected U.S. unemployment data. While one would expect a flight towards the Dollar and consequently a pullback in gold due to their negative correlation, the risk trades are holding strong thus far considering the circumstances. It seems investors were initially encouraged to pick up some gold after the unemployment rate headed past 10% (10.2%) in an effort to diversify their portfolios. However, it’s hard to expect the risk trade to hold up all afternoon in light of what has transpired. Therefore, gold may be hard pressed to accelerate past $1100/oz today unless we experience a sizable devaluation of the Dollar. Therefore, we will wait to see how the day transpires before providing a more in depth analysis.

Fortunately for bulls, we’re still at a loss of downtrend lines and historical perspective for gold. Therefore, the psychological $1100/oz level serves as our only trustworthy topside technical for the time being. Today’s direct about face from $1100/oz further supports the assumption that $1100/oz could serve as a reliable topside barrier for the near-term. As for the downside, we’ve readjusted our uptrend lines, giving us an idea of support. Gold has 11/05 and 11/04 lows serving as technical cushions along with our new 3rd tier uptrend line and the psychological $1075/oz level.

Present Price: $1092.55/oz

Resistances: $1095.12/oz, $1098.11/oz, $1100.97/oz

Supports: $1089.07/oz, $1086.43/oz, $1083.14/oz, $1079.93/oz, $1075.01/oz

Psychological: $1100/oz, $1075/oz.

Gold Consolidates After Huge Gains

Gold is consolidating around the $1090/oz level after its impressive topside breakout earlier this week. Investors are monitoring the Dollar as the markets digest today’s monetary policy decisions from the ECB and BoE while contemplating a test of the psychological $1100/oz level. Regardless, this week’s breakout was a sign of strong support for gold’s uptrend since the precious metal moved without full participation from the Dollar. However, the sustainability of gold’s new near-term uptrend will likely depend upon a broad-based devaluation in the Dollar since the two are negatively correlated. Hence, investors should keep a sharp on the interaction of gold’s correlations with tier respective topside technicals, most notably the EUR/USD and AUD/USD.

Technically speaking, we’re at a loss of downtrend lines and historical perspective again. Therefore, the psychological $1100/oz level serves as our only trustworthy topside technical for the time being. Speaking of which, gold stopped just short of $1100/oz, hinting that the level could have a near-term psychological impact on investors. As for the downside, we’ve readjusted our uptrend lines, giving us an idea of support. Gold has 11/05 and 11/04 lows serving as technical cushions along with our new 3rd tier uptrend line and the psychological $1075/oz level.

Present Price: $1091.30/oz

Resistances: $1091.49/oz, $1092.77/oz, $1095.77/oz, $1100.04/oz

Supports: $1087.85/oz, $1085.28/oz, $1083.14/oz, $1079.93/oz, $1075.01/oz, $1069.89

Psychological: $1100/oz, $1075/oz.

Gold Tops Out Just Below $1100/oz

Gold surged past our 2nd tier downtrend yesterday after the IMF announced that India made a large bullion purchase from the monetary fund’s stockpile. Gold’s technicals were already working in the topside’s favor, making yesterday’s breakout explosive. Furthermore, gold managed to make yesterday’s key topside movement without the full cooperation of the Euro and Aussie. In fact, gold’s impressive breakout could signal another round of weakness in the Dollar. Regardless, gold’s momentum continues to work in favor of the topside as investors and governments try to diversify their assets and decrease their dependency on the Dollar. Meanwhile, central bank meetings will be in focus for the next 24-48 hours, meaning volatility in the FX markets should increase. Therefore, investors should expect further volatility in gold, especially considering the precious metal made such a bullish movement.

Technically speaking, we’re at a loss of downtrend lines and historical perspective again. Therefore, the psychological $1100/oz level serves as our only trustworthy topside technical for the time being. Speaking of which, gold stopped just short of $1100/oz, hinting that the level could have a near-term psychological impact on investors. As for the downside, we’ve readjusted our uptrend lines, giving us an idea of support to go along with the psychological $1075/oz level. Meanwhile, gold’s near-term activity could take its cue from the Dollar. Hence, investors should monitor any technical breakouts or setbacks in either the EUR/USD or AUD/USD.

Present Price: $1091.30/oz

Resistances: $1091.49/oz, $1092.77/oz, $1095.77/oz, $1100.04/oz

Supports: $1087.85/oz, $1085.28/oz, $1083.14/oz, $1079.93/oz, $1075.01/oz, $1069.89

Psychological: $1100/oz, $1075/oz.

Consolidation likely for gold.

Intraday bias in Gold remains neutral for the moment as it's still bounded in range of 1026.9 and 1072. Some more sideway consolidations could still be seen but after all, short term outlook will remain bullish as long as 38.2% retracement of 931.3 to 1072 at 1018.3 holds. Break of 1072 high will bring rally resumption to 1100 psychological level next. On the downside, however, decisive break of 1018.3 will indicate that recent rise has completed and deeper decline should be seen to 985.5 cluster support (61.8% retracement at 985.0) instead.

In the bigger picture, the long term up trend in Gold has resumed after taking out 1033.9 resistance firmly. Rise from 681 would likely develop into another set of five wave sequence with first wave completed at 1007.7, second wave triangle consolidation completed at 931.3. Rise from 931.3 is expected to extend to 61.8% projection of 681 to 1007.7 from 931.3 at 1133.2 first and then 100% projection at 1258 next. On the downside, though, break of 985.5 support will dampen this bullish view and will turn focus back to 931.3 support instead.