Gold still has been trading rather technically, opposed to what many may say is fundamentally driven. The US dollar index has remained positive for six consecutive months and at multi-year highs. And, two solid (on the surface) gross domestic prints have hindered gold’s upward progress, but lower support levels have held – so have higher resistance levels. Gold has remained somewhat consolidated in 2014 with $1,200 being a key focal point. It has been a psychological line in the sand.
Gold has seen high while trading to $1,200 per toz. When the yellow metal saw support at $1,200, it has been able to rally to higher resistance levels. Conversely, the inability to garner sufficient support has cause gold to trade lower, particular to support in the mid-$1,170s and low-$1,180s.
On the , gold has broken lower through the and began to form a , which is generally . Gold could push lower, but the new channel has key support levels within its decent. The former ascending and current (interestingly) intersect at $1,204.50 – price where gold opened up in 2014. This will remain a key level to watch.
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