Gold Battles $1150/oz
Thursday, April 8th, 2010Thursday, April 8, 2010
Gold is testing the resilience of its psychological $1150/oz level as the precious metal extends its impressive uptrend from March lows. Gold has disregarded weakness in the Euro and seems to be benefitting from risk-averse money flows as investors divest from Europe and shift their funds to gold, the greenback and higher yielding currencies such as the Aussie and Loonie. Meanwhile, gold is separating itself from any meaningful medium-term downtrend lines, yet faces previous 2010 highs and the $1160/oz area. Although the data wire will be relatively quiet tomorrow, psychological headwinds are gather strength amid fresh concern in the EU. Greek bond yields have hit record highs since it joined the EU as investors question the nation’s ability to gain necessary fiscal funding on its own. Hence, psychological could drive the markets tomorrow, so investors should keep an eye out for any new headlines hitting the news wire regarding Greece or any other fiscally troubled EU countries, such as Portugal. Regardless, gold seems to be on its own path, benefitting from both risk and risk-averse money flows until correlations become clearer across the FX board.
Technically speaking, gold faces topside technical barriers in the form of the psychological $1150/oz area and previous 2010 highs, or the $1160/oz area. As for the downside, gold has fresh uptrend lines serving as technical cushions along with intraday and 4/7 lows.
Present Price: $1150.60/ oz
Resistances: $1151.56/oz, $1152.83/oz, $1153.73/oz, $1154.94/oz, $1156.14/oz
Supports: $1149.77/oz, $1148.83/oz, $1147.93/oz, $1146.50/oz, $1145.38/oz, $1144.39/oz
Psychological: $1150/oz, 2010 highs and April lows
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