Sep
7
2010

 

Gold Weakens Slightly

Gold is edging lower today as the precious metal continues to have a tough time breaking free of $1250/oz despite a negative psychological turn of events.  Germany’s banking association announced that German banks may need an additional $135 billion in liquidity in order to shore up finances.  The news has lifted investor uncertainty as we wonder what else they’ll find after turning over more stones.  While a heightened level of uncertainty normally benefits gold, the precious metal is dribbling lower and volume is on the light side.  We can deduct that investors are yet comfortable leaving behind $1250/oz and previous 2010 highs.  Hence, it seems there will need to be a larger negative psychological shock in order to jolt bulls into action.  Meanwhile, long-term uptrend lines are still in place with multiple layers of support waiting below.
            
Technically speaking, gold has supports in the form of intraday and 8/31 lows.  As for the topside, gold faces technical barriers in the form of previous September highs and the psychological $1250/oz level.  Additionally, previous 2010 highs could serve as a solid technical barrier should they be reached. 
Present Price: $1246.45/ oz
Resistances: $1246.86/oz, $1248.34/oz, $1250.91/oz, $1252.71/oz, $1254.71/oz, $1255.70/oz
Supports: $1244.97/oz, $1241.60/oz, $1240.12/oz, $1238.62/oz, $1237.21/oz, $1235.40/oz
Psychological: $1250/oz, 2010 Highs
 
 
 

 
Posted by: Matthew Myers

 

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