Gold is rushing higher as our 2nd tier uptrend and 1st tier downtrend lines collide. The precious metal is reacting positively to its multiple inflection points, a reverse of course from what we anticipated earlier. The EUR/USD is experiencing a technical breakout to the topside after elbowing through our 4th tier downtrend line while the Dollar depreciates against the Yen. Gold has exhibited a tighter positive correlation with the EUR/USD lately than the rest of the Dollar crosses. Hence, investors are brushing aside the Dollar's appreciation against the Pound considering Britain's cup of economic data has been half empty. Meanwhile, investors are dipping into crude and the S&P futures, all signs that higher-risk investors are getting back into the game. All of these developments bode well for gold, and the precious metal has responding by leaping past $950/oz. We recognize a spike of buy-side volume on the 1-hour, signaling the upward movement has some conviction. However, investors should keep in mind gold's $950/oz psychological trading range has proven far-reaching. Therefore, we are not discounting the possibility that gold could re-gravitate towards $950/oz. Meanwhile, we've reset our top-end downtrend line to compensate for today's activity. The precious metal still faces our 2nd and 3rd tier downtrend lines along with August highs. Gold will need a considerable burst of energy to climb past these technical barriers before the week is over. Hence, a downward force remains. As for the downside, gold now has $950/oz and our 2nd tier uptrend line to rely upon. Therefore, the precious metal has solid near-term protection.
Present Price: $957.60/oz
Resistances: $958.82/oz, $959.72/oz, $960.87/oz, $962.01/oz, $963.16/oz
Supports: $956.02/oz, $954.74/oz, $953.08/oz, $951.94/oz, $950.66/oz