Slobodan Drvenica
Windsor Brokers
GOLD
Spot gold bounced from new 1 ½ month low ($1803) posted in early hours of Monday’s trading as comments from US Treasury nominee Janet Yellen that the US does not seek weaker dollar, slowed greenback’s recovery.
Expectations of new fiscal stimulus package would boost metal’s appeal as an inflation hedge and the US Federal Reserve unlikely to become more hawkish in coming months, would provide additional support to the metal’s price.
Potential recovery from two-week $1959/$1803 fall would face some strong obstacles en-route, as thick daily cloud (spanned between $1842 and $1865) already capped recovery attempts last week.
Surge through the cloud and close above its top would provide initial reversal signal, but bulls need to make first step on sustained break of $1842 pivot (200DMA / daily cloud base).
Caution on failure to clear $1842 as this would keep the downside vulnerable and risk retest of psychological $1800 support, loss of which would expose key level at $1764 (low of pullback from new record high at $2074).
Res: 1838; 1842; 1857; 1865
Sup: 1817; 1803; 1775; 1764
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
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