By Fast Brokers – Gold has climbed above our 2nd tier downtrend line and previous July highs as the GBP/USD and EUR/USD burst higher. Both currency pairs are setting fresh 2009 highs, a bullish confirmation on their part. Gold is enjoying its positive correlation, heading towards our 3rd tier downtrend line in a hurry. However, June 10 highs and the 3rd tier downtrend line could prove to be worthy immediate-term obstacles with the S&P futures dangling just beneath their highly psychological 1000 level. Even though the EUR/USD, GBP/USD, and crude futures have done their parts, 1000 should be a challenge for the S&P if psychological precedence holds true. Therefore, even if the S&P futures should poke above 1000, we expect a retracement and ensuing near-term battle. As a result, gold could enter a similar conflict with its aforementioned barriers. On the other hand, most of the S&P’s correlations are confirming the uptrend, meaning that a 1000+ S&P may be in the cards. Hence, the near-term future for gold is bright even if the immediate-term has its obstacles.
Present Price: $961.65/oz
Resistances: $962.24/oz, $963.81/oz, $965.26/oz, $966.91/oz, $968.60/oz
Supports: $961.00/oz, $959.34/oz, $958.12/oz, $956.32/oz, $954.39/oz
Psychological: $950/oz
Market Commentary provided by Fast Brokers.
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