{"id":7217,"date":"2010-03-01T12:29:26","date_gmt":"2010-03-01T17:29:26","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=7217"},"modified":"2010-03-01T12:29:26","modified_gmt":"2010-03-01T17:29:26","slug":"gold-floats-around-1115oz-despite-risk-aversion","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/03\/01\/gold-floats-around-1115oz-despite-risk-aversion\/","title":{"rendered":"Gold Floats Around $1115\/oz Despite Risk Aversion"},"content":{"rendered":"

Gold is holding around Friday\u2019s highs despite an incredible selloff in the Cable and considerable weakness in the EUR\/USD.\u00a0 Hence, gold is continuing to deviate from its usual positive correlation with the Euro and Pound and is instead performing relative well amid increasing economic uncertainty in Europe.\u00a0 However, the AUD\/USD is performing rather well with investors speculating that the RBA may either raise rates tomorrow or keep the benchmark \"\"<\/a>unchanged.\u00a0 Therefore, gold may be deriving its correlative strength from selective sources at the moment.\u00a0 That being said, it wouldn\u2019t be surprising to see gold\u2019s positive correlation with the Euro and Pound to kick back in over the medium-term despite recent unreliability.\u00a0 Meanwhile, gold is has initially reacted positively to weaker than expected U.S. Manufacturing PMI and pricing data.\u00a0 Disappointing U.S. data gives the economy a relative weakness and benefits the risk trade, hence a slight uptick in gold after the data flow.\u00a0 Market activity will likely pick up as the market progresses, beginning with tomorrow\u2019s RBA rate decision during tomorrow\u2019s Asia trading session followed by UK HPI and EU CPI data.\u00a0 For the time being, it will be interesting to see if gold can continue to hold above its highly psychological $1100\/oz level while February highs wait around the corner.<\/p>\n

Technically speaking, gold faces multiple downtrend lines along with 2\/17 and 2\/22 highs.\u00a0 Our 3rd tier downtrend line could serve as a key near-term technical since it runs through February highs, or the $1130\/oz area.\u00a0 As for the downside, gold has multiple uptrend lines serving as technical cushions along with intraday, 2\/26, and 2\/25 lows.\u00a0 Furthermore, the psychological $1100\/oz level could continue to play an influential role over the near-term.<\/p>\n

Present Price: $1116.30\/oz<\/p>\n

Resistances: $1118.92\/oz, $1121.35\/oz, $1123.30\/oz, $1125.97\/ oz, $1128.160\/oz, $1130.84\/oz<\/p>\n

Supports: $1115.03\/oz, $1112.60\/oz, $1110.41\/oz, $1108.22\/oz, $1106.18\/oz, $1103.10\/oz<\/p>\n

Psychological: $1100\/oz, $1125\/oz, February highs and lows<\/p>\n

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

(click to enlarge)<\/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":"

Gold is holding around Friday\u2019s highs despite an incredible selloff in the Cable and considerable weakness in the EUR\/USD.\u00a0 Hence, gold is continuing to deviate from its usual positive correlation with the Euro and Pound and is instead performing relative well amid increasing economic uncertainty in Europe.\u00a0 However, the AUD\/USD is performing rather well with … <\/p>\n

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