Gold Remains Steady Below $1190

 | Jun 16, 2015 12:07AM ET

Gold – Tuesday, June 16th, 2015

In the last couple of weeks, gold has been content to trade around the key $1180 level, and it presently sits around $1185 after recently surging higher to $1190. During last week, it rallied well to move from a two month low near $1160 back up to above $1190 again, before easing back to the $1180 level. The key $1180 level has consistently provided solid support and has held it up now for a couple of months, with the recent exception. A few weeks 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. 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 16 at 00:40 GMT 1186.1 H: 1190.8 L: 1172.8

Gold Technical

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

During the early hours of the Asian trading session on Tuesday, gold is easing back to $1185 after recently surging higher to $1190. Current range: trading right around $1185.

Further levels in both directions:

• Below: 1180 and 1150.

• Above: 1200 and 1240.

OANDA’s Open Position Ratios