Gold Consolidates Around $1190

Gold for Thursday, May 28, 2015

Over the last week, gold has slowly but surely drifted lower back to the key $1200 level; however, in the last couple of days, it has fallen sharply to a two week low around $1185. It is now consolidating just below $1190. In the week prior, gold enjoyed a solid week, surging to a three month high above $1225, before returning most of those gains easing back to and enjoying support from around the key $1200 level. A few weeks ago, gold enjoyed support at $1180, which allowed it to rally back to $1190 and beyond to resistance at $1200. Several weeks ago, gold fell sharply back down through the key $1200 level down to below another support level around $1180, before dropping further to a six week low below $1170. To start that week, gold was trying to rally higher and regain lost ground from the end of the previous week, which saw it drop to near $1175. Over the last couple of months, gold has had an attraction to the key $1200 level, as every time it ventures away, it returns quickly to trade right around it.

Back at end of March, gold eased a little for a few days to below $1185, although for the best part of the last few weeks, gold has moved strongly off the support at $1150 and then found some new support from the $1200 level. Throughout the second half of February, gold enjoyed rock solid support from the key $1200 level, which held it up on numerous occasions. For about a month, gold drifted steadily lower down to a one month low near the key $1200 level, before finding the solid support at this key level. 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.

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(Daily chart / 4 hourly chart below)

Gold May 28 at 00:30 GMT 1187.9 H: 1191.1 L: 1183.7

Gold Technical

During the early hours of the Asian trading session on Thursday, gold is consolidating right below $1190 after its testing of support around $1200 over the last few days. Current range: trading right below $1190.

Further levels in both directions:

• Below: 1180 and 1150.

• Above: 1240 and 1300.

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