{"id":7429,"date":"2010-03-09T12:14:09","date_gmt":"2010-03-09T17:14:09","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=7429"},"modified":"2010-03-09T12:14:09","modified_gmt":"2010-03-09T17:14:09","slug":"gold-drops-amid-risk-aversion","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/03\/09\/gold-drops-amid-risk-aversion\/","title":{"rendered":"Gold Drops Amid Risk Aversion"},"content":{"rendered":"

Gold has tacked onto yesterday\u2019s 1% pullback in reaction to a broad-based downturn in the risk trade.\u00a0 Hence, it seems gold is following its negative correlation with the Dollar once again.\u00a0 On the bright side, gold has avoided a retest of its highly psychological $1100\/oz level and remains above the lower band of its trading range.\u00a0 Hence, the possibility of a return of gold\u2019s upward momentum is not out of the question as investors lock in profits over the past couple trading \"\"<\/a>sessions.\u00a0 Much will depend on the Dollar\u2019s reaction to upcoming economic data releases from China over the next couple trading sessions.\u00a0 Strong Chinese data could favor the risk trade and send gold higher, whereas negative data could very well have the opposite effect.\u00a0 Meanwhile, it will be interesting to see of gold can stabilize above its highly psychological $1100\/oz level.\u00a0 Additionally, our new 1st tier uptrend line could serve as a key support since it runs through February lows, or the $1090\/oz area.<\/p>\n

Technically speaking, we\u2019ve formed two new makeshift downtrend lines running through 3\/2 and 3\/3 levels to give investors an idea of present resistance.\u00a0 Additionally, gold must face previous March highs and the psychological $1050\/oz area to the topside.\u00a0 As for the downside, gold still has multiple uptrend lines serving as technical cushions, highlighted by our 1st tier as we mentioned before.\u00a0 Furthermore, gold has the psychological $1100\/oz level working in its favor should it be tested.<\/p>\n

Present Price: $1113.24\/oz<\/p>\n

Resistances: $1114.21\/oz, $1116.63\/oz, $1118.75\/oz, $1121.05\/ oz, $1123.03\/oz, $1124.97\/oz<\/p>\n

Supports: $1112.11\/oz, $1110.07\/oz, $1107.26\/oz, $1104.71\/oz, $1101.73\/oz, $1099.20\/oz<\/p>\n

Psychological: $1100\/oz, $1150\/oz, January Highs, March 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 has tacked onto yesterday\u2019s 1% pullback in reaction to a broad-based downturn in the risk trade.\u00a0 Hence, it seems gold is following its negative correlation with the Dollar once again.\u00a0 On the bright side, gold has avoided a retest of its highly psychological $1100\/oz level and remains above the lower band of its trading … <\/p>\n

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