Saturday, 23 July 2016

Gold

Gold broke the downward trend that started since mid-March 2015, when was marked the annual low at $1046.77. Currently the price of the precious metal found support around the psychological level of $1200 and successfully broke the previous highs around $1270. Possible continuation of the movement would lead the price to the nearest resistance in the area around $1352, and then to $1395. On the downside support is located at $1210, followed by $1085, and in the longer term at $1000. 
On Friday session ahead of the ECB rate decision, gold bounced from the four weeks bottom and reached an intraday high at $1333.90. But thereafter fell and marked a low at $1319.30 and closed at $1321. The stochastic is about to cross the oversold area, but is still is showing bearish momentum.



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