Gold: Enjoys Support From Around $1200

Gold for Thursday, May 21, 2015

Gold enjoyed a solid week last week surging to a three month high above $1225 towards the end of last week, however it has since returned most of those gains easing back to around $1210. The support at key level around $1200 has kicked in recently and propped gold up a little. A couple of weeks ago gold enjoyed support at $1180 which allowed it to rally back to $1190 and beyond to resistance at $1200. A few 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.

(Daily chart / 4 hourly chart below)

Gold May 21 at 03:00 GMT 1211.2 H: 1212.4 L: 1207.9

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Gold Technical

During the early hours of the Asian trading session on Thursday, Gold is consolidating right above $1210 after its testing of support around $1200. Current range: trading right above $1210.

Further levels in both directions:

• Below: 1200, 1180 and 1150.

• Above: 1240 and 1300.

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