{"id":9912,"date":"2010-06-02T09:38:56","date_gmt":"2010-06-02T13:38:56","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=9912"},"modified":"2010-06-02T09:38:56","modified_gmt":"2010-06-02T13:38:56","slug":"gold-wrestles-with-1225oz","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/06\/02\/gold-wrestles-with-1225oz\/","title":{"rendered":"Gold Wrestles with $1225\/oz"},"content":{"rendered":"

By Fast Brokers<\/strong> – Gold is wrestling with its psychological $1225\/oz level as FX markets fluctuate.\u00a0 Gold managed to consolidate yesterday despite sizable volatility in the risk trade.\u00a0 After the EUR\/USD dropped beneath May lows, the FX risk trade experienced a solid broad-based rally in reaction to a large increase in U.S. construction spending.\u00a0 However, U.S. equities faded late and the EUR\/USD got sucked back into its downward momentum since an improvement in construction spending isn\u2019t enough to turn the tide considering the strength of global headwinds.\u00a0 Japan joined the fray today after Hatoyama announced his resignation.\u00a0 Political instability in Japan has dented the yen\u2019s safe haven status for the near-term.\u00a0 Hence, investors have fewer preferable investment vehicles during times of heightened uncertainty and this should benefit gold.\u00a0 That being said, it\u2019s difficult not to be positive on the precious metal over the medium-term considering its safe haven status and inclination to exhibit a negative correlation with the dollar during risk rallies.\u00a0 Attention should remain on the EU as investors wait for the next shoe to drop concerning the union\u2019s fiscal crisis.\u00a0 Investors will also be looking at U.S. pending home sales to see if America\u2019s housing market is still stabilizing.<\/p>\n

Technically speaking, gold faces technical barriers in the form of intraday and 5\/17 highs.\u00a0 Additionally, the psychological $1250\/oz level should serve as a solid technical barrier should it be reached.\u00a0 As for the downside, gold has multiple uptrend lines serving as technical cushions along with 6\/1 and 5\/28 lows.\u00a0 Furthermore, the psychological $1200\/oz area now becomes a technical cushion.<\/p>\n

Present Price: $1223.41\/ oz
\nResistances: $1225.20\/oz, $1227.63\/oz, $1229.56\/oz, $1232.22\/oz, $1235.19\/oz
\nSupports:\u00a0 $1221.69\/oz, $1219.16\/oz, $1216.02\/oz, $1212.52\/oz, $1210.36\/oz, $1208.18\/oz
\nPsychological:\u00a0 $1200\/oz, $1250\/oz<\/p>\n

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

(click chart 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 regarded neither 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 wrestling with its psychological $1225\/oz level as FX markets fluctuate.\u00a0 Gold managed to consolidate yesterday despite sizable volatility in the risk trade.\u00a0 After the EUR\/USD dropped beneath May lows, the FX risk trade experienced a solid broad-based rally in reaction to a large increase in U.S. construction spending.\u00a0 However, … <\/p>\n

Continue reading “Gold Wrestles with $1225\/oz”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-9912","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/9912","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=9912"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/9912\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=9912"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=9912"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=9912"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}