Monday, April 4, 2011

Gold @ 1.432,50

Gold futures dropped hard on last Friday´s robust NFP results, but quickly recovered to the upside of $1430 to finish the week where it remains on Monday. The front-month contract has steadily risen to a daily high of $1437.00/ounce where it trades just under at time of writing.

Overall market volatility remains noticeable low today as traders await the ECB and BoE rate decisions in the coming days. Still, broad uncertainty regarding geopolitical risks in MENA as well as the debt problems in Europe support the yellow metal in range to all-time highs.

John Kicklighter of DailyFX suggests: “A preoccupation with rates (seen in FX) does not direct capital to the metal. General risk appetite can revive the speculative interests in gold; but we greater conviction than what we currently have. And risk aversion at this point would actually hurt.”



Euro recovery from 1.4020 low last week, extended on Monday's Asian session to 1.4269 high, to pull down on European morning, with risk appetite waning, and test support at 1.4200 area which so far remains unbroken.

On the downside, below 1.4190/00 (day lows), the Euro might find support at 1.4150 (Mar 29/30 highs) and 1.4060 (Apr 1 low). Resistance levels remain at 1.4240/45 (intra-day resistance), and above here, 1.4280 (Nov 4,2010 high) and 1.4415 (Jan 20 2010 high).

Mid-term frames show the Euro bullish targeting 1.4285, according to Stoyan Mihaylov, technical analyst at Deltastock.com: "Friday's test of 1.4050 support failed and a sharp reversal followed, initiating a rise all the way up to 1.4268. The bias on the mid-frame is bullish for a tight test of 1.4283 high, but the intraday outlook is bearish for 1.4179 support."

source: fxstreet.com
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15 comments:

  1. CandleintheDarkApril 4, 2011 at 8:18 AM

    Interesting update as always!

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  2. metaphysicalfarmsApril 4, 2011 at 8:29 AM

    I knew I should have bought gold when it was at $800

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  3. BrockApril 4, 2011 at 9:19 AM

    Thanks again for the great info

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  4. UnknownApril 4, 2011 at 1:32 PM

    gold is still insanely raising

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  5. The Awesome AlienApril 4, 2011 at 2:28 PM

    have i told how helpful this blog is if i haven't i guess i just did thanks for bringing the market to me =D

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  6. LemmiwinksApril 4, 2011 at 3:04 PM

    i like your blog. keep up the good work

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  7. CorridorApril 4, 2011 at 3:15 PM

    Interesting... I wonder what it'll be like in the near future.

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  8. ChefJRHApril 4, 2011 at 5:06 PM

    Looks like its still not a good time to invest in gold.

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  9. edApril 4, 2011 at 5:45 PM

    i love me some gold - i should start investing

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  10. Aaron M. GipsonApril 4, 2011 at 6:21 PM

    Wow, I had no idea gold would have such an up and down spread like that. I always thought it to be so stable...

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  11. RoloApril 5, 2011 at 2:09 AM

    do you have any idea what analysts think the dollar will finish the year compared to other currencies? is there anything on the horizon that could cause a major change either positive or negative?

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  12. metaphysicalfarmsApril 5, 2011 at 9:42 AM

    It won't get higher than that

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  13. jopjopjopApril 5, 2011 at 3:26 PM

    @Rolo: nobody can predict that on a long-term basis. Everything can cause positive/negative changes (war, politics, goldprice, oilprice, economic expansion, gross domestic product, interest rate, FED ...)

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  14. JayApril 5, 2011 at 9:29 PM

    that is some technical analysis... a bit too much for me...

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  15. neo.enviroApril 5, 2011 at 9:38 PM

    Wow I can't believe the money Gold is pulling in. Aussie Dollar is insanely strong also (Aussie follower here)

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