Gold for Friday, May 29, 2015
Over the last week gold has slowly but surely drifted lower back to the key $1200 level however in the last couple of days it has fallen sharply to a two week low around $1185. It is now consolidating just below $1190. In the week prior gold enjoyed a solid week surging to a three month high above $1225 before returning most of those gains easing back to and enjoying support from around the key $1200 level. A few weeks ago gold enjoyed support at $1180 which allowed it to rally back to $1190 and beyond to resistance at $1200. Several weeks ago gold fell sharply back down through the key $1200 level down to below another support level around $1180, before dropping further to a six week low below $1170. To start that week gold was trying to rally higher and regain lost ground from the end of the previous week which saw it drop to near $1175. Over the last couple of months gold has had an attraction to the key $1200 level as every time it ventures away it returns quickly to trade right around it.
Back at end of March 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. 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.
(Daily chart / 4 hourly chart below)
Gold May 28 at 00:30 GMT 1187.9 H: 1191.1 L: 1183.7
Gold Technical
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1180 | 1150 | — | 1240 | 1300 | — |
During the early hours of the Asian trading session on Thursday, gold is consolidating right below $1190 after its testing of support around $1200 over the last few days. Current range: trading right below $1190.
Further levels in both directions:
• Below: 1180 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 70% as it has fallen back below $1200. The trader sentiment is strongly in favour of long positions.
Economic Releases
- 01:30 AU Private Sector Credit (Apr)
- 05:00 JP Construction orders (Apr)
- 05:00 JP Housing starts (Apr)
- 08:00 EU M3 Money Supply (sa) (Apr)
- 08:30 UK GDP (2nd Est.) (Q1)
- 08:30 UK Index of Services (Mar)
- 12:30 CA GDP (Mar)
- 12:30 CA GDP (Q1)
- 12:30 US Core PCE Price Index (2nd Est.) (Q1)
- 12:30 US GDP Annualised (2nd Est.) (Q1)
- 12:30 US GDP Price Index (2nd Est.) (Q1)
- 13:45 US Chicago PMI (May)
- 14:00 US Univ of Mich Sent. (Final) (May)