Gold is edging lower today as the precious metal continues to have a tough time breaking free of $1250/oz despite a negative psychological turn of events. Germany's banking association announced that German banks may need an additional $135 billion in liquidity in order to shore up finances. The news has lifted investor uncertainty as we wonder what else they'll find after turning over more stones. While a heightened level of uncertainty normally benefits gold, the precious metal is dribbling lower and volume is on the light side. We can deduct that investors are yet comfortable leaving behind $1250/oz and previous 2010 highs. Hence, it seems there will need to be a larger negative psychological shock in order to jolt bulls into action. Meanwhile, long-term uptrend lines are still in place with multiple layers of support waiting below.
Technically speaking, gold has supports in the form of intraday and 8/31 lows. As for the topside, gold faces technical barriers in the form of previous September highs and the psychological $1250/oz level. Additionally, previous 2010 highs could serve as a solid technical barrier should they be reached. Present Price: $1246.45/ oz Resistances: $1246.86/oz, $1248.34/oz, $1250.91/oz, $1252.71/oz, $1254.71/oz, $1255.70/oz Supports: $1244.97/oz, $1241.60/oz, $1240.12/oz, $1238.62/oz, $1237.21/oz, $1235.40/oz Psychological: $1250/oz, 2010 Highs
Disclaimer: FastBrokers' market commentary is provided for information purposes only and under no circumstances should be regarded neither as investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained. All materials are property of Fast Trading services, LLC and unless otherwise indicated, any unauthorized reproduction is prohibited.
