Gold Continues To Consolidate Below $1100
MarketPulse | Jul 28, 2015 02:16AM ET
Gold – Tuesday 28 July 2015
Throughout the last month, gold has steadily declined and fallen from above the key $1200 level back to a new five year low below $1100. Earlier last week gold fell sharply through the $1100 level down to the multi-year low near $1070 before rallying back up towards $1100. It is presently consolidating in a narrow range around $1095 and meeting resistance at the $1100 level. A couple of weeks ago it enjoyed solid support from the $1150 level which stopped the sharp falls and allowed it to rally a little higher up to above $1160. During this time it has rallied higher but run into resistance at $1160, which has sent it lower again. To finish out, a few weeks ago it was able to rally against the medium term down trend and move back above the $1170 level before easing off again. A few weeks ago, it surged higher to back above the key $1180 level before easing lower again.
Should it rally higher in the foreseeable future, the $1200 level will remain significant as it provided ample resistance to higher prices for an extended period. A couple of months ago, gold fell sharply back through the key $1200 level and spent the remainder of that week consolidating in a narrow range around $1190. The $1200 level has been a significant level throughout most of this year and remains a key level presently offering reasonable resistance to higher prices, whilst lower the $1180 level continues to be significant. It will be some effort just to get back within reach of the $1200 level after its recent strong falls.
Earlier in May it was able to make a run through the $1200 level to reach a three month high above $1230, however gold was quickly sold off and returned back to the $1200 level where it enjoyed some support for several days. For around two months through April, gold traded in a range between $1180 and around $1220 and had very few excursions outside these limits. Gold is currently pinned between resistance at $1200 and support at $1180 and it is surprising to see it trade in such a narrow range for several days. It seems it is waiting patiently for external factors to determine which level will be severely tested next.
Gold July 28 at 00:35 GMT 1094.3 H: 1105.2 L: 1088.5
Gold Technical
| S3 | S2 | S1 | R1 | R2 | R3 |
| — | — | — | 1100 | 1200 | 1240 |
During the early hours of the Asian trading session on Tuesday, gold is trading in a narrow range just below $1100 around $1095 after recently dropping to a new multi-year low near $1070. It is trading right around $1095.
Get The News You Want
Further levels in both directions:
• Below:
• Above: 1100, 1200 and 1240.
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 to above 65%, as gold has dropped sharply to below the $1100 level. The trader sentiment is strongly in favour of long positions.
Economic Releases
- 23:50 (Mon) JP Large Retailers Sales (Jun)
- 23:50 (Mon) JP Retail Sales (Jun)
- 06:00 UK Nationwide House Prices (Jul) (28th-2nd)
- 08:30 UK GDP (1st Est.) (Q2)
- 08:30 UK Index of Services (May)
- 12:30 CA Industrial Product Price Index (Jun)
- 12:30 CA Raw Materials Price Index (Jun)
- 13:00 US S&P Case-Shiller Home Price (May)
- 14:00 US Consumer Confidence (Jul)
- 14:00 US Federal Reserve FOMC Meeting (to 29th)
Original post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.