By Fast Brokers – Gold’s intraday bounce has been negated by the psychological $1100/oz area as risk aversion persists around the FX markets. The Dollar is currently appreciating across the board, most notably against the Yen and Aussie. A resolution in the EU regarding Greece hasn’t managed to quell uncertainty thus far with a limited impact in the EUR/USD. Hence, the Dollar continues to have upward momentum working in its favor, a negative for gold due to their usual negative correlation. Meanwhile, U.S. Final GDP came in 3 basis points below analyst expectations. This discouraging figure seems to be having a positive influence on the Greenback since it has become the preferred safe haven as of late. That being said, it appears the Dollar is in a win-win situation at the moment due to fiscal worries in the EU along with electoral uncertainty in the UK. Hence, gold seems to face an uphill battle for the time being. The data wire will be relatively quiet on Monday, meaning present momentums could persist into Tuesday barring a key psychological development.
Technically speaking, despite gold’s inability to break through $1100/oz, the precious metal does have uptrend line serving as a technical cushion along with 3/25 and 3/24 lows. As for the topside, gold faces multiple downtrend lines due to the extent of its recent pullback. Gold must also overcome its highly psychological $1100/oz area once again, no easy task.
Present Price: $1095.65/oz
Resistances: $1095.72/oz, $1097.26/oz, $1099.73/oz, $1101.23/oz, $1102.64/oz, $1104.34/oz
Supports: $1094.92/oz, $1093.37/oz, $1092.23/oz, $1091.40/oz, $1089.78/oz, $1088.72/oz
Psychological: $1100/oz, March lows
(click chart to enlarge)
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