Gold – Remains Steady Around $1190

Gold – Tuesday 2 June 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

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

(Shows the ratio of long vs. short positions held for Gold among all OANDA clients. The left percentage (blue) shows long positions; the right percentage (orange) shows short positions.)

The long position ratio for Gold has decreased to near 70% again as Gold has remained very steady around $1190.  The trader sentiment is strongly in favour of long positions.

Economic Releases

• 23:30 (Mon) AU AIG Services PMI (May)
• 01:30 AU Current Account (Q1)
• 01:30 AU Net Exports of GDP (Q1)
• 04:30 AU RBA – Overnight Rate
• 08:30 UK BoE – Mortgage Approvals (Apr)
• 08:30 UK BoE – Net Consumer Credit (Apr)
• 08:30 UK BoE – Secured Lending (Apr)
• 08:30 UK CIPS/Markit Construction PMI (May)
• 08:30 UK M4 Money Supply (Apr)
• 09:00 EU Flash HICP (May)
• 09:00 EU PPI (Apr)
• 14:00 US Factory Orders (Apr)
• 14:00 US IBD Consumer Optimism (Jun)
• US Vehicle Sales (May)

* All release times are GMT

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