Gold has risen by over $20 overnight in the Asia session, largely due to short-term safe haven trading as equities are down and because 2nd quarter US growth forecasts have been slightly reigned in as a result of unexpectedly lower US wholesale inventories – any news at the moment which could possibly have an impact on the tapering of QE tends to ripple the gold market before price action resumes its previous behaviour.
Should gold break above 1355 it’s likely that it will reach 1400 pretty quickly as stop positions are taken out – there’s nothing much in the way to prevent the climb to 1400, but after that there is resistance at 1415 and 1425.
It’s more likely that we’ll see price resume its downwards action - we expect gold to pull back towards 1300 and then 1280, with strong support coming in around 1270.
Should gold break above 1355 it’s likely that it will reach 1400 pretty quickly as stop positions are taken out – there’s nothing much in the way to prevent the climb to 1400, but after that there is resistance at 1415 and 1425.
It’s more likely that we’ll see price resume its downwards action - we expect gold to pull back towards 1300 and then 1280, with strong support coming in around 1270.