Tuesday, 31 May 2016

Gold above $ 1200 handle


During the past two weeks gold suffered from the rising expectations that Fed could soon increase interest rates and the stronger US dollar. Yesterday the closing price settled to three and a half month low at $ 1207 and is on track to mark the largest monthly decline since November 2015. Yesterdays also was hit the lowest level since February 17 at $ 1199.60.
Today gold is slightly relieved because of the Asian markets fluctuation. In the morning the yellow metal conquered the psychological $ 1200 handle and reached $1214.60.
Bulls might be flashed in case of breaking above $ 1218 level, where is located the major resistance, which is acting as 100-day EMA. Looking downwards key support is seen at $ 1190 (55-day EMA).

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