Gold is dipping back towards $950/oz and our 1st tier downtrend line as both the GBP/USD and EUR/USD contract. Gold managed to propel from our 1st tier uptrend line yesterday in reaction to a rally in U.S. equities along with a deflating Greenback. However, volume is declining on the buy-side while our 3rd tier uptrend and 1st tier downtrend lines reach tier inflection point. We believe this collision could carry some weight since we notice trend inflection points in the GBP/USD, EUR/USD, and USD/JPY as well. Furthermore, volatility is picking up in U.S. equities and the S&P futures are still debating 1000 as crude battles $70/bbl. Therefore, a sizable breakout in either direction over the next few trading sessions wouldn't be uncalled for considering markets are at a critical juncture.

Meanwhile, investors should continue to monitor developments in both the EUR/USD and GBP/USD since gold has been tightly correlated with these currencies lately. Gold's psychological $950/oz zone should continue to play a factor for the near-term so long as the precious metal is constrained by our trend lines. Gold still faces our 2nd and 3rd tier downtrend lines along with August 3rd and 7th highs. Meanwhile, the precious metal is being sucked back under the lid of its 7/20-7/28 trading range. Gold has some strong immediate-term technical cushions in our 2nd and 3rd tier uptrend lines along with $950/oz. Consolidation in the precious metal is likely for the immediate-term as investors await more defining global economic data.

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Present Price: $956.35/oz

Resistances: $957.74/oz, $958.77/oz, $959.66/oz, $960.94/oz, $962.22/oz

Supports: $956.33/oz, $954.93/oz, $953.77/oz, $952.37/oz, $950.70/oz

Psychological: $950/oz