Sep
9
2010
9
2010
Gold Consolidates Above $1250/oz
Gold is consolidating above its highly psychological $1250/oz level as the precious metal eyes previous 2010 highs after popping yesterday in reaction to new investor uncertainty regarding the EU. Uncertainty has increased as news hits the wires that German banks need more liquidity. Although comments have been fairly vague up to this point, the uncertainty is led investors towards gold once again as a safe-haven. That being said, if the present level of uncertainty doesn’t subside soon then gold may have enough topside momentum to leave behind its psychological $1250/oz level and top previous 2010 highs. The BOE will announce its monthly monetary policy decision soon and central bank announcements have the potential to create near-term volatility in gold due to its correlation with expected inflation. Therefore, investors should keep an eye on gold as the BOE news hits the wire. The U.S. will also print trade balance data along with weekly unemployment claims, meaning markets as a whole could be in for a relatively active trading session.
Technically speaking, gold has supports in the form of intraday and 9/7 lows. As for the topside, gold faces technical barriers in the form of previous 2010 highs.
Present Price: $1255.50/ oz
Resistances: $1255.70/oz, $1258.05/oz, $1259.77/oz, $1262.13/oz, $1263.42/oz, $1265.16/oz
Supports: $1254.21/oz, $1252.71/oz, $1250.91/oz, $1248.34/oz, $1246.86/oz, $1244.97/oz
Psychological: $1250/oz, 2010 Highs
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Posted by: Matthew Myers
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