Gold finally gives in to the risk-on environment, breaking key ascending support line
Gold is currently trading at 1249 at the time of writing with a high of $1,258.62 and a low of $1,247.92.
Gold has finally given in to the risk-on environment and has fallen sharply by $11 bucks to $1,247.92 lows in recent trade. The move puts the ascending support line from $1,218 at risk. The yen was beaten up on when stops triggered on the 111 handle and a wave of dollar bids have supported the drop in Gold. DXY is now up from 99.20 and into the 99.70's region.
US Consumer Confidence improves further: not just a post-election bounce - Wells Fargo
A number of factors are supporting the bid in the dollar. We had better-looking data with a surge in consumer confidence that came in close to seventeen-year high. The Consumer Board Consumer Confidence Index rallied to125.6 smashing expectations of a114 print. We also had hawkish comments from Federal Reserve officials. Chicago's Fed President Charles Evans and Dallas' Federal Reserve Bank President Robert Kaplan both advocated for further rate hikes this year.
Gold levels
the ascending support line at 1,249 is breached and targets 1,241 lows of 24th March. 1,235 marks a key support area as the previous resistance of the rising 16th March channel. 1,224 and 1,218 are next key supporting areas. To the upside, 1,251,1,256, 1,258 guards the recent highs of 1,260.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
