Gold for Tuesday, May 20, 2014
Over the last couple of weeks, gold has eased back from around $1315 which included a short sharp fall back down below $1300 down to support around $1290, which has it remaining within its current range between $1275 and $1315. It has now steadied and consolidated around the $1290 level for the last several days whilst trying to rally higher, back to the resistance level at $1300, although in the last 24 hours it did jump up above $1300 before falling back down just as quickly. It had done well to surge higher to around $1315 a few weeks ago which saw it move well off support around $1280. If gold was to retreat again back towards $1275 then a large descending triangle would be forming which would indicate lower prices below $1275.
Over the last couple of months the $1275 level has established itself as a level of support and on several occasions has propped up the price of gold after reasonable falls. Throughout the second half of March gold fell heavily from resistance around $1400 back down to a several week low near support at $1275. Both these levels remain relevant as $1275 continues to offer support and the $1400 level is likely to play a role again should gold move up higher. Through the first couple of months of this year, gold moved very well from a longer term support level around $1200 up towards a six month higher near $1400 before returning to its present trading levels closer to $1300.
Gold prices settled slightly higher on Monday as the dollar slipped, but strong U.S. economic data capped the metal's gains. Platinum Group Metals (AMEX:PLG) extended gains after posting their strongest weekly performance in six weeks, on supply worries due to strikes at South African mines. U.S. gold futures for June delivery ended 40 cents higher at $1,293.80 an ounce, having earlier touched a session high of $1,305.70 an ounce. Spot gold rose 0.8 percent to $1,293 an ounce, recovering after two consecutive sessions of losses. "There are contradicting factors keeping the gold market in the current narrow trading range ... you have a softer dollar and political tensions like the Ukraine conflict on one side,'' Commerzbank analyst Carsten Fritsch said. "Meanwhile, lackluster investment demand in terms of ETFs and reports of rather soft physical demand prevented prices to increase.''
Gold May 20 at 00:35 GMT 1293.7 H: 1294.2 L: 1292.5
Gold Technical
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1280 | 1275 | --- | 1315 | 1330 | --- |
During the early hours of the Asian trading session on Tuesday, Gold is trying to consolidate a little and stop the fall after moving strongly lower from above $1305 in the last 12 hours or so. Current range: trading right between $1290 and $1295 around $1294.
Further levels in both directions:
• Below: 1280 and 1275.
• Above: 1315 and 1330.
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 above 65% again as gold remains around $1300 level. The trader sentiment remains in favour of long positions.
Economic Releases
- 01:30 AU RBA minutes released
- 04:30 JP All Industry activity index (Mar)
- 05:00 JP Leading indicator (Final) (Mar)
- 08:30 UK CPI (Apr)
- 08:30 UK Input & Output Prices (Apr)
- 08:30 UK ONS House Prices (Mar)
- 12:30 CA Wholesale Sales (Mar)