Gold enjoyed a very solid few weeks which saw it surge to a five month high near $1308, before easing back over the last week or so back down to near $1250. It has since rallied and is presently trading right around $1280 after running into some resistance around that area. A couple of weeks ago gold eased back a little and steadied below the $1280 level after surging to that area and a four month high, before its recent strong surge higher. Over the last month gold has been on the move as it has been able to rally strongly from around $1170 back through the key $1200 level and to a 12 week high just above the $1240 level before its further surge higher in the last few weeks. Despite this recent break, the $1240 level remains key as it has provided plenty of resistance over the last few months and is now likely to play a role should gold retreat back to it.
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 edged lower in early Asian trade on Tuesday, outshone by equities that got a boost from expectations that Greece is nearing a debt deal with international creditors. Spot gold was down 0.1 percent at $1,273.30 an ounce by 0033 GMT, adding to a modest loss on Monday. U.S. gold for April delivery eased 0.2 percent to $1,274.20 an ounce. Greece’s new government has proposed ending a standoff with its international creditors by swapping its outstanding debt for new growth-linked bonds, Finance Minister Yanis Varoufakis was quoted by the Financial Times as saying on Monday. U.S. consumer spending recorded its biggest decline since late 2009 in December with households saving the extra cash from cheaper gasoline, while factory activity cooled in January. Those numbers released on Monday followed data last week that showed a slowdown in economic expansion to 2.6 percent in the fourth quarter from 5 percent in July-September.
(Daily chart / 4 hourly chart below)
Gold February 3 at 03:05 GMT 1275 H: 1275.9 L: 1271.9
Gold Technical
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1240 | 1200 | 1170 | 1300 | — | — |
During the early hours of the Asian trading session on Tuesday, Gold is trading in a very narrow range just under $1280, which also provided some resistance a couple of weeks ago. Current range: trading right below $1280.
Further levels in both directions:
• Below: 1240, 1200 and 1170.
• Above: 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 well above 50% as it has eased back away from the five month high near $1300 in the last few days. The trader sentiment is ever so slightly in favour of long positions.
Economic Releases
- 00:30 AU Building approvals (Dec)
- 00:30 AU Trade Balance (Dec)
- 03:30 AU RBA – Overnight Rate
- 09:30 UK CIPS/Markit Construction PMI (Jan)
- 10:00 EU PPI (Dec)
- 13:30 CA Industrial product price index (Dec)
- 13:30 CA Raw Materials Price Index (Dec)
- 15:00 US Factory Orders (Dec)
- 15:00 US IBD Consumer Optimism (Feb)
- AU RBA holds interest rate meeting
- US Vehicle Sales (Jan)