This week will be like that preceded whatever gold ahead of Japan and the Bank of Canada on Wednesday, followed by a meeting on Thursday, more importantly what will result from the European Central Bank meeting of decisions on quantitative easing and finally the results of the Greek elections on Sunday program.
Today with the holiday of Martin Luther King liquidity look weak in the yellow metal as it dropped gold trading at 1275 levels after hitting the highest levels on Friday to test the level of 1282.
In the meantime, gold continued to benefit from the demand for it as a safe haven after the Swiss central bank move to cut interest rates on the Swiss currency to rise more than 20% against the euro and the US dollar. This in addition to the ongoing concern about the oil as these factors continue to keep gold above the key support level of the previous 1255 – 200 DMA after gold tested its highest level since 4 months to touch 1282.
Indicators look positive and probably go soon about 1294 – 76.4% 1345/1131 and then to 1300. any break this barrier could lead to a push for the highest level for August 8th 1322. For the US dollar against major currencies look the picture is not clear if the US dollar returned strength of the new gold would drop a strong and it is necessary to place orders to stop the purchasing centers are tightly. Important point as we mentioned in 1255 on the bottom side will be a warning signal and could see gold go down in the direction of 1235 and perhaps 1215. However, the prospect of falling gold is not likely now that the purchase is the preferred strategy with placing orders out tightly at the moment.
Support and resistance in gold at today:
Resistance: 1290, then 1300, then 1317
Support: 1263, then 1246, then 1236