Gold – Monday 15 June 2015
In the last couple of weeks gold has been content to trade around the key $1180 level which is where it presently sits. During last week it rallied well to move from a two month low near $1160 back up to above $1190 again before easing back to the $1180 level. The key $1180 level has consistently provided solid support and has held it up now for a couple of months, with the recent exception. A few weeks ago gold fell sharply back through the key $1200 level and spent the remainder of that week consolidating in a narrow range around $1190.
The $1200 level has been a significant level throughout most of this year and remains a key level presently offering reasonable resistance to higher prices, whilst lower the $1180 level continues to be significant. Throughout the last month or so the $1180 level has provided some support and has been called upon recently. Earlier in May it was able to make a run through the $1200 level to reach a three month high above $1230 however gold was quickly sold off and returned back to the $1200 level where it enjoyed some support for several days.
For around two months through April gold traded in a range between $1180 and around $1220 and had very few excursions outside these limits. Gold is currently pinned between resistance at $1200 and support at $1180 and it is surprising to see it trade in such a narrow range for several days. It seems it is waiting patiently for external factors to determine which level will be severely tested next.
(Daily chart / 4 hourly chart below)
Gold June 15 at 01:20 GMT 1182.9 H: 1186.6 L: 1180.7
During the early hours of the Asian trading session on Monday, Gold continues to trade in a very narrow range just above $1180. Current range: trading right above $1180.
Further levels in both directions:
• Below: 1180 and 1150.
• Above: 1200 and 1240.
OANDA’s Open Position Ratios
(Shows the ratio of long vs. short positions held for Gold among all OANDA clients. The left percentage (blue) shows long positions; the right percentage (orange) shows short positions.)
The long position ratio for Gold has moved back above 70% again as Gold has consolidated around $1180. The trader sentiment is strongly in favour of long positions.
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- 14:00 US NAHB Builders survey (Jun)
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