Gold Hands Up Early, Drops Back to $ 1340 Level
Gold finally broke through the mid / late Asian consolidation phase and has now removed most of its daily gains.
Precious metals were initially seen building overnight gains and supported by global fund transfers towards safer assets. The decline in US stock exchanges to Asian stocks and continues to support the safe haven appeal of these commodities.
However, a modest recovery in European exchanges limits demand and gives little additional encouragement. Meanwhile, a new wave of US Dollar weakness looks supportive and looks to limit further declines in dollar-denominated commodities - such as gold.
From a technical point of view, the commodities are retreating from the short-term trend resistant trend line and therefore, it would be better to wait for a clear break through the aforementioned obstacle before making a short-term incremental increase.
In the absence of a market-driven economic release, broader risk sentiment and USD price dynamics will continue to play an important role in determining commodity momentum today.
Technical levels are observed
Immediate support is pegged near the $ 1345 level, which if breached could make the metal vulnerable to return towards $ 1328-26 a strong horizontal zone with some close support near the $ 1332 area.
For the upside, the $ 1345 level remains a direct resistance that needs to be conquered, on top of which commodities seem to be ready to surpass the $ 1350 hurdle and into the $ 1358 selling offer zone.