Gold – Tuesday, June 16th, 2015
In the last couple of weeks, gold has been content to trade around the key $1180 level, and it presently sits around $1185 after recently surging higher to $1190. During last week, it rallied well to move from a two month low near $1160 back up to above $1190 again, before easing back to the $1180 level. The key $1180 level has consistently provided solid support and has held it up now for a couple of months, with the recent exception. A few weeks ago, gold fell sharply back through the key $1200 level, and spent the remainder of that week consolidating in a narrow range around $1190.
The $1200 level has been a significant level throughout most of this year, and remains a key level presently, offering reasonable resistance to higher prices, whilst lower the $1180 level continues to be significant. Throughout the last month or so, the $1180 level has provided some support and has been called upon recently. Earlier in May, it was able to make a run through the $1200 level to reach a three month high above $1230; however, gold was quickly sold off and returned back to the $1200 level, where it enjoyed some support for several days.
For around two months through April, gold traded in a range between $1180 and around $1220, and had very few excursions outside these limits. Gold is currently pinned between resistance at $1200 and support at $1180, and it is surprising to see it trade in such a narrow range for several days. It seems it is waiting patiently for external factors to determine which level will be severely tested next.
(Daily chart / 4 hourly chart below)
Gold June 16 at 00:40 GMT 1186.1 H: 1190.8 L: 1172.8
Gold Technical
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1180 | 1150 | — | 1200 | 1240 | — |
During the early hours of the Asian trading session on Tuesday, gold is easing back to $1185 after recently surging higher to $1190. Current range: trading right around $1185.
Further levels in both directions:
• Below: 1180 and 1150.
• Above: 1200 and 1240.
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 above 70% again, as gold has consolidated around $1180. The trader sentiment is strongly in favour of long positions.
Economic Releases
- 23:50 (Mon) JP Customs Cleared Trade (May)
- 01:30 AU New motor vehicle sales (May)
- 01:30 AU RBA June minutes released
- 08:30 UK CPI (May)
- 08:30 UK Input and Output Prices (May)
- 08:30 UK ONS House Prices (Apr)
- 09:00 EU ZEW (Economic Sentiment) (Jun)
- 12:30 US Building Permits (May)
- 12:30 US Housing Starts (May)
- US Federal Reserve FOMC meeting (to 17th)