Gold Slips in Thin Trading, but Gets Support from Ukraine Tension.
Gold slipped back below $1300 in thin holiday trading on Monday. London market was closed in observance of Easter Monday.
ETF outflows seen last week, may have weighed on sentiment somewhat. The largest gold back ETF saw nearly a 10 tons drop in its holdings. However, we know that gold coming out of the ETF vaults has been making its way to Asia for satisfying seemingly insatiable demand. That flow of physical metal has been well documented over the last year.
The four-party talks in Geneva last week regarding Ukraine may have somewhat lessened the geopolitical risks, but it would not take long for the rhetoric to start heating up once again. Russia accused Ukraine of violating the just reached agreement in Geneva, following a weekend shooting in Slavyansk, which prompted the pro-Russian mayor of that Ukrainian city to call for Russian to send ‘peace-keeping’ troops.
Ukraine claims that Russian troops are already operating in eastern-Ukraine, which would be a very clear violation of the four-party agreement. The New York Times and CNN published photos of the so-called “green men.” The Crimean annexation started with the infiltration of Russian Special Forces.
Technically, gold is trading at a major support level of 1278. A good buying opportunity arises at the 1278 major support level on gold with minimum risk and maximum reward.
