Gold Remains Steady Around $1190

 | Jun 02, 2015 12:13AM ET

Gold – Tuesday June 2nd, 2015

Earlier last week, gold fell sharply back through the key $1200 level and spent the remainder of the week consolidating in a narrow range around $1190. It has began this new week doing the same trading in a very narrow range right 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.

Throughout the last month or so, the $1180 level has provided some support and has been called upon recently. 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.

(Daily chart / 4 hourly chart below)

Gold, June 2 at 01:00 GMT 1189.4 H: 1204.5 L: 1184.3

Gold Technical

S3 S2 S1 R1 R2 R3
1180 1150 — 1200 1240 —

During the early hours of the Asian trading session on Tuesday, gold continues to trade in a very narrow range right around $1190. Current range: trading right around $1190.

Further levels in both directions:

• Below: 1180 and 1150.

• Above: 1200 and 1240.

OANDA’s Open Position Ratios