Gold is stepping up casually from yesterday’s lows in reaction to a broad-based depreciation of the greenback. However, volume is declining to the upside, while the precious metal hasn’t managed to get back above our 2nd or 3rd tier trend line or into the thick of the trading range from last week. Therefore, the outlook for gold still has a negative tint to it, especially since crude and equities are presently trading in disadvantageous positions. On the other hand, the Cable and EUR/USD have made encouraging pops over the past 24 hours, giving some hope to gold’s uptrend since they are positively correlated. In all, gold is trading in a confusing range, and seems undecided as far as which direction to head in. The mixed performance of gold’s correlations shows that it’s best to be in a neutral position as the markets sort themselves out. The U.S. will report some key economic data today along with the Fed’s monetary policy decision. Hence, we could get a clearer picture by tomorrow. We maintain our negative outlook trend-wise on gold for the time being since the downside still has momentum on its side.
Present Price: $927.30/oz
Resistances: $931.41/oz, $935.62/oz, $939.82/oz, $941.85/oz, $943.88/oz
Supports: $923.96/oz, $927.40/oz, $920.95/oz, $917.49/oz, $914.99/oz
Psychological: $950/oz, $900/oz
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