Gold for Wednesday, April 22, 2015
Gold is presently trying to hold onto $1200 after dropping sharply through the $1200 level in the last 48 hours before rallying higher again. In the last couple of weeks, gold has traded in a narrow range right around the key $1200 level and this range seems to be getting tighter. It seems gold has an attraction to the key $1200 level as every time it ventures away it returns quickly to trade right around it. 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 down trend 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 gave up some of its overnight gains on Wednesday as the U.S. dollar firmed after earlier losses, with investors keeping their attention focused on the Greek debt crisis and its impact on the currency markets. Spot gold eased 0.1 percent to $1,200.55 an ounce by 0033 GMT, after gaining 0.5 percent on Tuesday. The dollar was mixed against major currencies on Tuesday, with the euro pivoting to modest gains against the greenback after euro zone finance ministers moved away from fixing a deadline for Greece to come up with fiscal reforms. Greece, which is quickly running out of cash, pledged to its euro zone partners in February that by the end of April it would agree with creditors on a comprehensive list of reforms to get 7.2 billion euros remaining from its bailout. But no package will be ready by Friday, when euro zone ministers are to meet in Riga, and it was also unlikely one will be ready by the end of the month, according to a senior euro zone official. Prolonged uncertainty over the debt crisis could boost demand for bullion, seen as a safe-haven.
(Daily chart / 4 hourly chart below)
Gold April 22 at 02:55 GMT 1201 H: 1203.5 L: 1199.8
Gold Technical
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1200 | 1150 | — | 1240 | 1300 | — |
During the early hours of the Asian trading session on Wednesday, Gold is trading in a very narrow range right around the key $1200 level. Current range: trading right around $1200.
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 below 65% as it has eased lower back to below $1200 after its recent surge higher to above $1220. The trader sentiment is in favour of long positions.
Economic Releases
- 00:30 AU Westpac-MI Leading Index (Mar)
- 01:00 AU Internet Skilled Vacancies (Mar)
- 01:30 AU CPI (Q1)
- 08:30 UK BoE MPC minutes released
- 13:00 US FHFA House Price Index (Feb)
- 14:00 EU Flash Consumer Sentiment (Apr)
- 14:00 US Existing home sales (Mar)