Gold has popped back above the highly psychological $1100/oz level, which could turn out to be a hard fought battle since the area does carry some extra psychological weight. Gold is finding its strength in Dollar weakness as we witness pops and consolidation in the EUR/USD, AUD/USD, and GBP/USD. The Greenback is pulling back across the board in reaction to yesterday’s disappointing U.S. data set, particularly the dip in New Home Sales. FX investors will get another dose of data today in the form of weekly Unemployment Claims and Durable Goods Orders. Should today’s data set reflect yesterday’s weakness the Dollar could experience further selling pressure as investors lock in profits ahead of Christmas, a positive catalyst for gold. That being said, activity should wind down as the session progresses with investors checking out for the holiday. Hence, gold could continue to float within striking difference of $1100/oz as investors close of shop for next week, which will also be shortened by the New Year holiday.
Technically speaking, gold has multiple uptrend lines serving as technical cushions along with 12/18 and 12/23 lows. As for the topside, gold faces technical barriers in the form of 12/21,12/15, and 12/7 highs along with the psychological $1150/oz level.
Present Price: $1102.25/oz
Resistances: $1105.05/oz, $1110.77/oz, $1115.27/oz, $1118.69/oz, $1123.03/oz, $1128.35/oz
Supports: $1100.58/oz, $1094.14/oz, $1088.30/oz, $1082.58/oz, $1079.61/oz, $1074.42/oz
Psychological: $1100/oz, $1075/oz, $1150/oz