As both Europe and
USA are overtaken by political woes and uncertainty is rising, investors are
eyeing precious metals. Gold prices resumed the upward movement and yesterday
marked the highest level since November at $1244.
Technical indicators have modestly retreated from the overbought region. As
seen on the four hour frame RSI is located slightly below 70 and is showing
lack of momentum. Stochastic is displaying modest bearish direction, but yet
is within extreme overbought area.
Short-term support is found at $1230 (50% Fibonacci rertracement of latest
$1137 to $1122 decline). Next support is seen at $1204 (38.2% of same
retracement).
To the upside bulls are thrilled by $1245 (a multi month high) and if
conquering this level, next target is the resistance at $1255 (61.8% Fibo).
Among this political uncertainty, a march towards the $1300 handle seems to be
quite possible, due to the increased demand for safe-heaven assets.
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