Gold Consolidates Below $1100/oz

Gold is continuing its consolidative pattern despite wild fluctuations in the FX market. The Combination of the Fed’s monetary policy decision, weak housing and unemployment data, and Obama’s State of the Union have provided more than enough data and news to move markets. While New Home Sales drove the Dollar higher, negative New Home Sales data sent the risk trading reeling only to be boosting back up by the Fed maintaining its loose monetary policy. Furthermore, Obama’s speech garnered a positive reaction from equities and helped send the risk trade higher once again. However, disappointing Unemployment Claims data has led investors back to safety. The FX markets have been all over the map to say the least. Gold has remained relatively calm amidst the volatility and it seems the precious metal is waiting for a more definitive directional commitment from the Dollar before settling upon a direction itself. Meanwhile, Congress may vote upon Bernanke’s confirmation today and investors are eagerly awaiting tomorrow’s U.S. Advance GDP data. Hence, FX markets should remain volatile throughout the remainder of the week and it will be interesting to see whether gold decides to participate. That being said, FX investors should keep an eye on gold and monitor the precious metal for a direction breakout for it could signal a similar movement in the Dollar.

Technically speaking, gold has our 1st tier uptrend line serving as a technical cushion along with January lows should they be tested. As for the topside, gold faces a few steep downtrend lines along with the highly psychological $1100/oz level. Furthermore, intraday and 1/26 highs could serve as technical barriers should they be reached.

Present Price: $1088.30/oz

Resistances: $1087.56/oz, $1085.32/oz, $1082.10/oz, $1078.92/oz, $1074.44/oz, $1070.65/oz

Supports: $1093.32/oz, $1096.91/oz, $1101.00/oz, $1103.49/oz, $1106.76/oz, $1109.96/oz

Psychological: $1075/oz, $1100/oz, January lows

Gold Consolidates as Investors Wait for Data and Fed

Gold is continuing its consolidation around the psychological $1100/oz level as the Dollar wavers ahead of U.S. New Home Sales and the Fed’s monetary policy decision. The chaotic appearance of our chart implies that gold could be approaching a turning point. All of our trend lines are colliding while the EUR/USD and AUD/USD trade around key supports. That being said, investors should monitor the major Dollar crosses for any considerable technical setbacks for this could forewarn of a similar decline in gold. On the other hand, should the major Dollar pairs be able to stabilize and the Dollar weaken, this could help gold make up for some of January’s lost ground. In addition to today’s data and Fed decision, Obama will also deliver his State of the Union tonight followed by U.S. Durable Goods Orders tomorrow. Hence, volatility could pick up over the next 24-48 hours.

Technically speaking, gold has multiple uptrend lines serving as technical cushions along December ’09 lows should they be tested. As for the topside, gold faces a few steep downtrend lines along with the highly psychological $1100/oz level. Furthermore, intraday and 12/31 highs could serve as technical barriers should they be reached.

Present Price: $1093.25/oz

Resistances: $1096.91/oz, $1100.67/oz, $1103.49/oz, $1106.31/oz, $1110.07/oz, $1115.39/oz

Supports: $1088.45/oz, $1085.01/oz, $1082.10/oz, $1079.30/oz, $1074.95/oz, $1070.65/oz

Psychological: $1075/oz, $1100/oz, December lows

Gold Negated by $1100/oz as Dollar Strengthens

Gold has reversed from our 2nd tier downtrend line and the psychological $1100/oz level as investors snap up the Dollar in another wave of risk aversion. The wave of Dollar strength began during today’s Asia trading session as China’s major banks indicated they are serious about reducing the issuance of new loans. Additionally, the S&P lowered its credit rating outlook for Japan, another positive development for the Dollar considering the negative message this sends in regards to the health of the global economic recovery. Furthermore, the UK just printed a Prelim GDP figure 3 basis points below analyst expectations. Hence, there is a combination of negative developments contributing to strength in the Greenback. However, despite today’s pop in the Dollar gold’s reaction has been somewhat limited thus far. Perhaps it’s the fact that gold is deciding how to deal with $1000/oz while hovering just above previous January lows. Meanwhile, volatility in the FX markets should remain at a heightened state with the release of U.S. CB Consumer Confidence later today. Additionally, Australia will print CPI during tomorrow’s Asia trading session followed by U.S. New Home Sales and the Fed’s monetary policy decision. That being said, investors should keep an eye on key support in the major Dollar pairs because further deterioration could have enough of an influence to drag gold below previous 2010 lows.

Technically speaking, gold has multiple uptrend lines serving as technical cushions along December ’09 lows should they be tested. As for the topside, gold faces a few steep downtrend lines along with the highly psychological $1100/oz level. Furthermore, intraday and 12/31 highs could serve as technical barriers should they be reached.

Present Price: $1091.00/oz

Resistances: $1095.66/oz, $1100.67/oz, $1103.49/oz, $1106.31/oz, $1110.07/oz, $1115.39/oz

Supports: $1088.45/oz, $1085.01/oz, $1082.10/oz, $1079.30/oz, $1074.95/oz, $1070.65/oz

Psychological: $1075/oz, $1100/oz, December lows

Gold Begins Week Rebounding From One-Month Low

The precious-metal prices climbed as investors turned to gold seeking a safe-haven investment especially after U.S. President Barack Obama's is planning to limit banks to be involved in risky transactions. As investors start buying gold, supports prices to incline from the one-month low.

The dollar is depreciating in the markets ahead of the U.S. economy releasing its existing home sales showing that they fell in December based on expectations, as existing home sales decline, meant that the reason behind the downfall of the nation is still not solved, therefore causing investors to sell dollar in disappointment.

Friday, gold fell $1.60 or 0.15% to close at $1091.50 an ounce as the dollar lost strength six major currencies which are measured by the Dollar Index, declined Friday to close at 78.26 while recording a high of 78.52 and a low of 78.03.

Among other precious metals; platinum is traded at $1540.40; palladium at $435.50; silver at $17.09; while, copper is at $334.05. Turning to commodity futures we see last week Friday, S&P GSCI closed at 501.53 points recording a high of 509.64 points and a low of 500.74 points while RJ/CRB Commodity closed at 275.56 points recording a high of 277.51 points and a low of 275.08.

SPDR gold trust, the largest exchange-traded fund backed by bullion in the world, stood steady at 1,111.92 metric tons. Gold was set in London on Thursday at $1084.00 per ounce declining from $1096.50 per ounce during the AM fixing.

In addition, stocks in Asia declined for the sixth consecutive day marking the longest declines in a row since July, as a result of worries that financial institutions in China, seek more capital since earnings are not enough to cover dividends for shareholders.

Turning to oil, we see that prices are trading close to a one-month low as stock markets decline therefore commodity producer companies' stocks decline. Also there are worries that the second biggest oil consumer, China, might increase interest rates therefore weighing on growth levels.

Currently, spot gold is traded at $1100.15 an ounce recording a high of $1103.27 an ounce and a low of $1092.10 an ounce.

Gold Drops Like a Rock as Equities Tumble

Gold is undergoing a hefty selloff right now as the S&P futures drop through key technical supports in reaction to weaker than expected weekly Unemployment Claims and Philly Manufacturing data. Today’s negative data set tipped the scale considering the rally the Dollar has been on lately. The Dollar initially rallied during the Asia trading session after China’s pricing data printed hotter than analyst expectations, extending gains in the Dollar against all major pairs as investors headed for safety in fear of tighter liquidity from China. Gold followed the Dollar’s lead, declining to its psychological $1100/oz level before bouncing off our 1st tier uptrend line. However, gold has since dropped below our 1st tier and we notice a similar pullback in the S&P futures. Hence, we could be entering a more extensive decline for both gold and the S&P futures over the near-term. Our 1st tier uptrend line carries added weight since it runs through December 09 lows, or the psychological $1075/oz area. Meanwhile, investors should keep an eye on the S&P futures and monitor their ability to stabilize for such an occurrence could allow gold to set a temporary bottom.

Present Price: $1095.20/oz

Resistances: $1097.02, $1102.62/oz, $1106.04/oz, $1110.08/oz, $1114.47/oz, $1117.85/oz

Supports: $1093.29/oz, $1089.87/oz, $1085.52/oz, $1082.10/oz, $1079.30/oz, $1074.95/oz

Psychological: $1075/oz, $1100/oz

Gold Tumbles Amid Broad-Based Dollar Strength

Gold is undergoing a heavy selloff right now in reaction to a combination of a huge pullback in the Euro combined with broad-based Dollar strength after an encouraging improvement in U.S. Building Permits. Today’s rally in the Dollar has had its expected impact on gold considering their negative correlation. Losses accelerated in the precious metal after it dipped below our 3rd tier uptrend line. Meanwhile, it seems that a retest of our 1st tier uptrend line and the highly psychological $1100/oz level could be in order. Attention will now turn to China with the release of GDP and Industrial Production coming during tomorrow’s Asia trading session. Furthermore, investors will receive EU PMI data along with U.S. weekly Unemployment Claims and the Philly Manufacturing Index. Hence, volatility could remain at a heightened state for the next 24 hours. That being said, investors should keep a close eye on the interaction between gold and its highly $1100/oz level should it be tested. Furthermore, investors should take note of signs of stability in the major Dollar crosses, particularly the EUR/USD. Once the EUR/USD does create a base this should yield stability in gold as well.

Present Price: $1113.30/oz

Resistances: $1114.45, $1118.16/oz, $1121.93/oz, $1125.93/oz, $1128.42/oz, $1134.33/oz

Supports: $1111.01/oz, $1109.15/oz, $1106.04/oz, $1100.44/oz, $1096.40/oz, $11093.29/oz

Psychological: $1100/oz

Gold Holds Steady At $1,130 On Martin Luther King Day

Gold prices held steady around $1,130 per ounce on Monday, with the topside limited by firmness in the dollar, as the closure of New York markets for Martin Luther King Day kept many investors on the sidelines. 'There is a good deal of anxiety over the upcoming reporting season where the fear is that the hurdle rate is set too high and that corporates won't be able to produce top line growth,' said Mislav Matejka, European equity strategist at JPMorgan. 'However, we think that it would be wrong to write it off.' Metal prices firmed on Monday on strong Chinese demand hopes and on a weaker dollar, lifting mining shares and European equities, while the euro hit a four-month low against a broadly firmer pound. Gold is trading at $1,131 as of 20:58pm, GMT, with a bearish trend. Gold's Pool-Position is 23% Long, meaning that most Finotec clients are selling the precious metal.

Gold Walks Along our 1st Tier Uptrend Line

Gold continues to find solace in our 1st tier uptrend line amid weakness. We’ve witnessed 4 consecutive bounces on our 1st tire uptrend line this month as the EUR/USD inches higher. Gold has built a beautiful head and shoulders pattern in the process with key economic data releases on deck. We notice similar anticipation in the EUR/USD and GBP/USD as the currency pairs consolidate with trend lines converging. Hence, it seems the markets could be in for some volatility as the week wears on. The UK and U.S. will release pricing data over the next two sessions and China will highlight the week during Thursday’s Asia trading session with the release of GPD and Industrial Production. That being said, investors shouldn’t get complacent during period of relative inactivity since the markets should heat up soon.

Technically speaking, gold has multiple uptrend lines serving as technical cushions along with 1/13, 1/8, 1/5 lows. We recognize that gold has built a neckline along our 4th tier uptrend line. Hence, a movement below our 4th tier could result in a large step lower. Meanwhile, gold’s psychological $1150/oz area should continue to play a role for the near-term. As for the topside, gold faces technical barriers in the form of 1/7 and 11/18, 11/23, and 11/27 highs along with the psychological $1175/oz level.

Present Price: $1136.00/oz

Resistances: $1136.38, $1138.89/oz, $1141.39/oz, $1145.47/oz, $1148.91/oz, $1153.61/oz

Supports: $1130.43/oz, $1127.30/oz, $1124.48/oz, $1120.41/oz, $1117.27/oz, $1114.45/oz

Psychological: $1150/oz, $1100/oz, January and December highs, January lows

Gold Drifts Lower as Dollar Rallies

Gold is drifting lower today as the Dollar rallies across the board amid risk-aversion. The Dollar’s rally began during the Asia trading session after the EU released more bleak statements in regards to the state of Greece’s economy. Furthermore, the AUD/USD dropped as reality sunk in that China is tightening liquidity, cooling down the globe’s hottest economy. Additional hawkish monetary measures from China could decreases demand for Australia’s commodities and this realization dragged the Aussie lower. Meanwhile, the U.S. released sluggish Industrial Production and UoM Consumer Sentiment data. Investors reacted by sending the Cable and AUD/USD lower, a negative development for gold considering their positive correlation. However, gold is holding up relatively well despite a retreat from the risk trade today. Gold is trading above intraday lows and has bounced off our 4th tier uptrend line. However, gold could be dragged lower should the Dollar continue to rally and the S&P futures extend their intraday losses. That being said, gold still has a solid support system in place.

Technically speaking, gold has multiple uptrend lines serving as technical cushions along with 1/13, 1/8, 1/5 lows. We recognize that gold has built a neckline along our 4th tier uptrend line. Hence, a movement below our 4th tier could result in a large step lower. Meanwhile, gold’s psychological $1150/oz area should continue to play a role for the near-term. As for the topside, gold faces technical barriers in the form of 1/7 and 11/18, 11/23, and 11/27 highs along with the psychological $1175/oz level.

Present Price: $1131.75/oz

Resistances: $1136.38, $1138.89/oz, $1141.39/oz, $1145.47/oz, $1148.91/oz, $1153.61/oz

Supports: $1130.43/oz, $1127.30/oz, $1124.48/oz, $1120.41/oz, $1117.27/oz, $1114.45/oz

Psychological: $1150/oz, $1100/oz, January and December highs, January lows

Gold Gains As The Dollar Weakens And Investors Await In The ECB

Gold inched up on Thursday, keeping a bullish tone from the day before when a weaker dollar spurred short-covering and physical buying, but investors were trading cautiously before the European Central Bank's policy decision and U.S. data. Gold prices fell sharply on Tuesday when China's decision to raise bank reserve requirements sparked fears that spending would be curtailed and decrease bullion's appeal as a hedge against inflation. As the dollar remained under pressure, players shifted their immediate focus to the ECB's policy decision and remarks by ECB President Jean Claude Trichet, as well as U.S. retail sales and weekly jobless claims due later in the day. Gold is trading at $1,140 as of 8:15am, GMT, with a bullish trend. Gold's Pool-Position is 91% Long, meaning that most Finotec clients are buying the precious metal.

Gold Sinks Below $1150/oz Despite Dollar Weakness

Gold incurred sizable losses yesterday despite aggressive topside movements in both the Cable and EUR/USD. Gold’s positive correlation is a bit puzzling and could be signaling further Dollar strength to come. Meanwhile, all eyes are turning to tomorrow’s ECB meeting and the release of U.S. Retail Sales. These two events could yield volatility in the FX markets and gold would likely tag along for the ride. That being said, investors may want to disregard yesterday’s positive correlation with the Dollar. We expect gold to maintain a negative correlation with the Dollar until further notice. Hence, investors should monitor activity in the EUR/USD and Cable considering both currency pairs just broke out of their respective January highs.

Technically speaking, gold has multiple uptrend lines serving as technical cushions along with 1/13, 1/8, 1/5 lows. We recognize that gold has built a neckline along our 4th tier uptrend line. Hence, a movement below our 4th tier could result in a large step lower. Meanwhile, gold’s psychological $1150/oz area should continue to play a role for the near-term. As for the topside, gold faces technical barriers in the form of 1/7 and 11/18, 11/23, and 11/27 highs along with the psychological $1175/oz level.

Present Price: $1131.30/oz

Resistances: $1134.19, $1138.89/oz, $1141.39/oz, $1147.34/oz, $1153.61/oz, $1157.68/oz

Supports: $1130.43/oz, $1127.30/oz, $1124.48/oz, $1119.47/oz, $1114.45/oz, $1111.63/oz

Psychological: $1150/oz, January and December highs, January lows

Gold Hangs Around $1150/oz

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

Gold Continues Rally on China's Encouraging Trade Balance

Gold charged past its psychological $1150/oz level today after solid Trade Balance data from China sparked a return to the risk trade. The FX markets experienced a jolt in activity today with the Dollar selling off across the board, a positive catalyst for gold considering their negative correlation. Gold has recovered nicely from December 2009 lows and continues to build upon its 2010 momentum. However, the precious metal appears to be cooling off right now as it tops around $1160/oz, just shy of 12/8 highs. We notice similar movements in the EUR/USD and GBP/USD, meaning gold's correlative behavior is back in full swing. Meanwhile, investors are looking ahead to tomorrow's U.S. Trade Balance data. It will be interesting to see what impact this data point has on the FX markets considering the Greenback has rallied recently on positive U.S. data. Hence, solid U.S. Trade Balance data could place a speed bump in gold's current uptrend.

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 serve as a technical cushion. 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: $1152.65/oz

Resistances: $1156.12/oz, $1160.50/oz, $1165.20/oz, $1168.96/oz, $1173.34/oz, $1178.36/oz

Supports: $1150.48/oz, $1146.72/oz, $1143.90/oz, $1139.51/oz, $1137.01/oz, $1130.43/oz

Psychological: $1175/oz, $1150/oz, December highs and January lows

Gold Rises in Reaction to Discouraging Jobs Data

Gold popped off what is now our 3rd tier uptrend line after U.S. Employment Change data printed weaker than analyst estimates. The pullback in employment data yielded knee-jerk selloff in the Dollar, a positive catalyst for gold since it is negatively correlated with the Greenback. However, upward momentum in the EUR/USD and GBP/USD is tempering at the moment, so investors should monitor whether the Dollar continues its downward trajectory as the trading session progresses. We wouldn’t be surprised to see the Dollar to add onto intraday losses considering the level of anticipation heading into today’s release. Investors should keep in mind that the Dollar’s December rally was triggered by a turnaround in U.S. employment data. Hence, today’s dip in employment has understandably resulted in Dollar weakness. Meanwhile, gold is staring down previous January highs with the psychological $1150/oz level hanging nearby.

Technically speaking, gold has multiple uptrend lines serving as technical cushions along with intraday, 1/05, 12/30, and 12/22 lows. On an encouraging note, gold continues to set consecutive higher lows after bottoming out in December, and we are currently unable to form a noteworthy downtrend line. Therefore, gold could have some decent upward mobility should the Dollar weaken further. As for the topside, gold faces technical barriers in the form of 12/17 and 11/18 highs along with the psychological $1150/oz level.

Present Price: $1137.13/oz

Resistances: $1138.89/oz, $1141.33/oz, $1144.84/oz, $1148.91/oz, $1153.17/oz, $1159.25/oz

Supports: $1133.56/oz, $1131.08/oz, $1128.24/oz, $1124.16/oz, $1119.47/oz, $1115.08/oz

Psychological: $1100/oz, $1150/oz, December highs and January lows

Gold Tops Out Following Solid Run

Gold is topping out below $1150/oz after a solid run despite recent weakness in the EUR/USD and GBP/USD. However, it seems gold’s usual negative correlation with the Dollar is coming back into play today. Gold is edging lower as we witness broad-based strength in the Greenback in reaction to a monetary tightening in China combined with weak data from the EU. Meanwhile, attention remains focused on tomorrow’s U.S. data set. The U.S. will release its headline Unemployment Rate and Employment Change figures. Seeing as a turnaround in U.S. employment triggered December’s Dollar rally, tomorrow’s employment data could stir up volatility in the FX markets should the numbers deviate from analyst expectations. Stronger than expected U.S employment data could encourage investors to snap up the Dollar again, normally a negative catalyst for the gold. On the other hand, discouraging employment numbers could yield broad-based weakness in the Dollar, a negative development for gold. Therefore, investors should keep an eye on the Dollar’s reaction to tomorrow’s economic data releases.

Technically speaking, gold has multiple uptrend lines serving as technical cushions along with 1/05, 12/30, and 12/22 lows. On an encouraging note, gold has set consecutive higher lows after bottoming out in December, and we are currently unable to form a noteworthy downtrend line. Therefore, gold could have some decent upward mobility should the Dollar weaken in reaction to upcoming U.S. data. Meanwhile, our 1st tier uptrend line could prove to be an important trend line since it runs through 10/28 lows, or the $1025/oz level. As for the topside, gold faces technical barriers in the form of 12/17 and 11/18 highs along with the psychological $1150/oz level.

Present Price: $1130.25/oz

Resistances: $1132.99/oz, $1137.41/oz, $1141.33/oz, $1145.40/oz, $1149.29/oz, $1153.17/oz

Supports: $1128.09/oz, $1124.03/oz, $1119.82/oz, $1115.29/oz, $1110.43/oz, $1105.57/oz

Psychological: $1100/oz, $1150/oz, December highs and January lows

Gold Pops Back Above $1100/oz

Gold is logging solid gains today as we witness broad based Dollar weakness in the FX markets today. Dollar weakness is an ideal environment for gold bulls since the precious metal has proven to be negatively correlated against the Greenback as investors head towards the risk trade. Meanwhile, investors are waiting for America’s ISM Manufacturing PMI number coming in about an hour’s time. It will be interesting to monitor the Dollar’s reaction to today’s U.S. release since investors were buying up the Greenback on positive data during the month of December. Hence, a strong Manufacturing PMI figure could temper gold’s present upward momentum. Despite today’s data release, investors are likely honing in on Wednesday’s U.S. Non-Farm Employment Change number. December’s Dollar rally was triggered by a turnaround in U.S. employment data. Therefore, Wednesday’s release could really move gold and the Dollar should the figure surprise in either direction.

Technically speaking, gold has multiple uptrend lines serving as technical cushions along with 12/31, 12/30 and 12/22 lows. On an encouraging note, gold has set consecutive higher lows after bottoming out in December and we are unable to form a noteworthy downtrend line. Therefore, gold could have some decent upward mobility should the Dollar continue to weaken. Meanwhile, our 4th tier uptrend line could prove to be an important trend line since it runs through 10/28 lows, or the $1025/oz level. As for the topside, gold faces technical barriers in the form of 12/17 highs along with the psychological $1150/oz level.

Present Price: $1117.55/oz

Resistances: $1117.80/oz, $1122.70/oz, $1128.09/oz, $1132.99/oz, $1137.41/oz, $1141.33/oz

Supports: $1110.94/oz, $1104.83/oz, $1100.55/oz, $1096.27/oz, $1092.91/oz

Psychological: $1100/oz, $1150/oz, December lows