{"id":5661,"date":"2010-01-05T12:12:15","date_gmt":"2010-01-05T17:12:15","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=5661"},"modified":"2010-01-05T12:12:15","modified_gmt":"2010-01-05T17:12:15","slug":"gold-pulls-back-with-dollar-strength","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/01\/05\/gold-pulls-back-with-dollar-strength\/","title":{"rendered":"Gold Pulls Back with Dollar Strength"},"content":{"rendered":"

By Fast Brokers<\/strong> – Gold is pulling back from intraday highs as we notice similar weakness in both the EUR\/USD and AUD\/USD.\u00a0 Hence, it seems gold\u2019s negative correlation with the Dollar is in play.\u00a0 Investors are currently waiting U.S. Pending Home Sales and Factory Orders data points.\u00a0 We\u2019ve yet to see how the Dollar\u2019s correlation with play out in the beginning of 2010, so it will be interesting to see how the Greenback reacts to today\u2019s data set.\u00a0 However, tomorrow\u2019s ADP Non-Farm Employment Change figure should be more telling considering the Dollar\u2019s December rally was triggered by a turnaround in U.S. employment.\u00a0 That being said, investors should keep a close eye on the Dollar\u2019s reaction to tomorrow\u2019s employment number since the FX markets could be in for some volatility.\u00a0 Meanwhile, gold is still trading above its highly psychological $1100\/oz level and December lows are sitting comfortably beneath present levels.\u00a0 Therefore, gold has a few solid supports in place.<\/p>\n

Technically speaking, gold has multiple uptrend lines serving as technical cushions along with 12\/31, 12\/30 and 12\/22 lows.\u00a0 On an encouraging note, gold has set consecutive higher lows after bottoming out in December, and we are currently unable to form a noteworthy downtrend line.\u00a0 Therefore, gold could have some decent upward mobility should the Dollar weaken in reaction to upcoming U.S. data.\u00a0 Meanwhile, our 1st tier uptrend line could prove to be an important trend line since it runs through 10\/28 lows, or the $1025\/oz level.\u00a0 As for the topside, gold faces technical barriers in the form of 12\/17 highs along with the psychological $1150\/oz level.<\/p>\n

Present Price: $1120.35\/oz<\/p>\n

Resistances:\u00a0 $1122.70\/oz, $1128.09\/oz, $1132.99\/oz, $1137.41\/oz, $1141.33\/oz, $1145.40\/oz<\/p>\n

Supports: $1117.80\/oz, $1113.99\/oz, $1110.94\/oz, $1106.54\/oz, $1100.71\/oz, $1097.15\/oz<\/p>\n

Psychological: $1100\/oz, $1150\/oz, December highs and lows<\/p>\n

\"\"<\/a><\/p>\n

Market Commentary<\/strong><\/em> provided by Fast Brokers<\/strong>.<\/a><\/p>\n

Disclaimer:<\/strong> FastBrokers\u2019 market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell\/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.<\/p>\n

Risk Disclosure:<\/strong> There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Fast Brokers – Gold is pulling back from intraday highs as we notice similar weakness in both the EUR\/USD and AUD\/USD.\u00a0 Hence, it seems gold\u2019s negative correlation with the Dollar is in play.\u00a0 Investors are currently waiting U.S. Pending Home Sales and Factory Orders data points.\u00a0 We\u2019ve yet to see how the Dollar\u2019s correlation … <\/p>\n

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