Gold for Friday, April 24, 2015
In the last 24 hours gold has steadied just above the $1190 level after dropping sharply through the key $1200 level down to below $1190 a couple of days ago. In the last couple of weeks, gold has traded in a narrow range right around the key $1200 level and this range had been getting tighter. Gold has had an attraction to the key $1200 level as every time it ventures away it returns quickly to trade right around it so it will be interesting to see if this happens again. A few weeks ago gold sprung to life surging higher away from the key $1200 level back to a seven week high above $1220 before easing back and finding some support at the key $1200 level. Several weeks ago gold eased a little for a few days to below $1185, although for the best part of the last few weeks gold has moved strongly off the support at $1150 and then found some new support from the $1200 level. It still has its eyes firmly on the key $1200 level and it will be interesting to see whether it can remain above this level and continue to receive support. Prior to the recent move, gold remained quite steady enjoying strong support from the $1150 level whilst some eyes would have been looking lower.
Throughout the second half of February gold enjoyed rock solid support from the key $1200 level, which held it up on numerous occasions. For about a month gold drifted steadily lower down to a one month low near the key $1200 level before finding the solid support at this key level. At the beginning of December gold eased lower away from the resistance level at $1240 yet again back down to below $1200. During the second half of November gold made repeated runs at the resistance level at $1200 failing every time, before finally breaking through strongly. Throughout the first half of November Gold enjoyed a strong resurgence back to the key $1200 level where it has met stiff resistance up until recently.
Throughout the second half of October gold fell very strongly and resumed the medium-term downtrend falling from above $1250 back down through the key $1240 level, down below $1200 to a multi year low near $1130. It spent a few days consolidating around $1160 after the strong fall which has allowed it to rally higher in the last couple of weeks. Earlier in October Gold ran into the previous key level at $1240, however it also managed to surge higher to a five week high at $1255. In late August gold enjoyed a resurgence as it moved strongly higher off the support level at $1275, however it then ran into resistance at $1290. In the week prior, gold had been falling lower back towards the medium-term support level at $1290 however to finish out last week it fell sharply down to the previous key level at $1275.
Gold closed above a three-week low on Thursday, following its biggest drop in over a month, as the dollar rose following strong U.S. housing data that stoked expectations the Federal Reserve could raise interest rates soon. Spot gold was up 0.8 percent at $1,197 an ounce, after touching its lowest since April 1 at $1,183.65. The metal fell 1.3 percent on Wednesday, its biggest single-day decline since March 6, pressured by a stronger dollar after U.S. home resales surged to their highest level in 18 months in March. U.S. gold futures for June delivery closed up $7.40 at $1,194.30 an ounce. “On the one hand, you are seeing some geopolitical support, limiting any downside, on the other the U.S. interest rates story supports the dollar,” Citi strategist David Wilson said. “It’s difficult to get excited about gold one way or another.”
Gold April 24 at 01:20 GMT 1193.1 H: 1194.6 L: 1193.1
Gold Technicals
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1200 | 1150 | — | 1240 | 1300 | — |
During the early hours of the Asian trading session on Friday, gold is trading in a very narrow range right above $1190 around $1193. Current range: trading above $1190.
Further levels in both directions:
• Below: 1200 and 1150.
• Above: 1240 and 1300.
OANDA’s Open Position Ratios
(Shows the ratio of long vs. short positions held for gold among all OANDA clients. The left percentage (blue) shows long positions; the right percentage (orange) shows short positions.)
The long position ratio for gold has moved back to above 65% as it has fallen through the key $1200 level. The trader sentiment is in favour of long positions.
Economic Releases
- 04:30 JP All Industry activity index (Feb)
- 12:30 US Durable goods (Mar)
- EU Euro-Area FinMin’s and Central Bankers meet in Riga (to 25th)