By Fast Brokers – 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
Market Commentary provided by Fast Brokers.
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