Gold spent the previous week consolidating under the historic highs with Friday’s attempt at a rally failing to get near 2411.45 for a long wick at the close. At this point it appears much of the global tensions have already been priced in by the market and unlikely to fuel further safe haven plays short of an actual declaration of war between Israel and Iran. Nor are inflation pressures that elevated despite the experience we are seeing in the US.
Resistance:
- 2500.00 – Strong: Psycholohical
- 2431.45 – Moderate: Historic Highs
- 2402.01 – Minor: US Session Highs
Support
- 2368.70 – Minor: Consolidation Lows
- 2318.03 – Moderate: Two Week Range Floor
- 2310.40 – Minor: 20D Moving Average
The failure to see new highs the previous week underscores exhaustion for Gold bulls even as daily oscillators continue to come off overbought levels. In the lower time frames, last weeks price action has us forming a triangle the break of its support paving the way for a retreat to the key 2318.03 two week range floor. It would take fresh catalyst for us to consider any shorts below 2318.03 and prefer looking for an intraday buildup to retest the resistances.
