Gold turns negative, slips below $1280

5 May, 2016

Gold has now turned lower, extending its weakness for fourth consecutive session, sliding further below $1280 level to currently trade near $1278, though off day's low of $1274.50.

Extending its reversal from $1300 handle, gold prices on Wednesday fell to as low as $1272 before recovering a bit, on mixed US economic data, to $1279. On Thursday, too, gold saw some initial buying interest that lifted the metal to $1283 but resumed its corrective move and dropped to an intraday low near $1274.

From technical perspective, $1280-82 area represents a key confluence resistance area comprising of 23.6% Fibonacci retracement level of $1207-$1303 up-swing and a short-term descending trend-channel resistance formation on hourly chart. Hence, clearing this immediate strong resistance would be key for enabling the metal to resume its prior appreciating move.

Technical levels to watch

On the downside, Wednesday's low level near $1272, closely followed by $1266-65 confluence region, are immediate support levels. The $1266-65 support constitutes 38.2% Fibonacci retracement level and the ascending trend-channel support. Hence, a decisive break below this strong support seems to accelerate the fall immediately towards 50% Fibonacci retracement level support near $1255 region.

On the upside, $1280-82 area remains immediate resistance to watch for. On decisive break-through this strong resistance, the metal seems to make a fresh attempt to move back towards $1300 psychological mark resistance.


Source link  
WTI downside opening up to $69.50

Looks vulnerable amid OPEC, non-OPEC output lift talks, stronger USD adds to the weight. Technical set up also indicate further downside risks...

Gold climbs back closer to weekly tops

Dovish FOMC minutes prompt some USD profit-taking and help regain positive traction. Sliding US bond yields/cautious mood provides an additional boost...

Gold eases from 1-month tops

Gold surrendered early modest gains to fresh 1-month tops and is currently placed near session lows, touched in the past hour. Easing fears of a full-blown...


Pound celebrates on positive headlines

Last week a UK government official reportedly signalled that progress had been made on the transition deal. However, unanswered questions have...

Gold weakens farther below $1320 level

Gold continued losing ground at the start of a new trading week and tumbled to fresh session lows, around $1315 in the past hour. Following an early...

Dollar risks getting dumped

While today's US inflation report is getting touted as being key for the short-term direction of travel for global markets, we're a bit more sceptical...


Gold drops to 4-month low

Gold (XAU/USD) hits a four-month low of $1256. 08 today as yield curve continues to collapse on speculation that tax reform would open doors for faster...

Euro approaching the support level

A break of $1.1800 would be technically important. Sterling, like the euro, appears to have traced out a reversal candlestick pattern-shooting...

Gold holds steady near 6-week highs

Gold trimmed of the early gains to a six-week high and retreated to the $1262 region during early the European session, albeit has managed to hold...

  


Share: