FXstreet.com (Barcelona) - With gold's Feb futures contract already expired and now looking at April's one next, the precious metal has tumbled today a -1.14% since previous weekly close Friday, or $20 cheaper, from the $1667 mark it dealt all past week long, making a doji candle in its weekly chart. Breaks at the same time below 200 day SMA last at $1664, while trading at the moment at $1648, off fresh 5-week lows at $1643.
Gold has been inside a trading range $1695/1640 since mid Dec, with lows at $1625 on Jan 04, pretty much as USD index has been doing too, although not with its regular natural correlation, which is negative. Instead, and since Sept '12 contract expired, in which natural negative correlation was obvious, since early Dec, correlation has been more positive than negative, something not usual.
Immediate support to the downside for Gold lies at recent fresh 5-week lows/June 06 highs $1643/0, followed by March 15-Dec 21 lows/June 16-19 highs at $1634, and Jan 04 5-month lows at $1625. To the upside, closest resistance come at Jan 28 lows $1651, followed by recent weekly-May 02 highs/Nov 06 lows at $1671, and Dec 07 lows/Feb 07 highs at $1683.
Gold has been inside a trading range $1695/1640 since mid Dec, with lows at $1625 on Jan 04, pretty much as USD index has been doing too, although not with its regular natural correlation, which is negative. Instead, and since Sept '12 contract expired, in which natural negative correlation was obvious, since early Dec, correlation has been more positive than negative, something not usual.
Immediate support to the downside for Gold lies at recent fresh 5-week lows/June 06 highs $1643/0, followed by March 15-Dec 21 lows/June 16-19 highs at $1634, and Jan 04 5-month lows at $1625. To the upside, closest resistance come at Jan 28 lows $1651, followed by recent weekly-May 02 highs/Nov 06 lows at $1671, and Dec 07 lows/Feb 07 highs at $1683.
