Gold Market Update: Gold Struggles To Move Higher After Hitting 1191
London (Mar 3) Gold has struggled to move higher after hitting a low of 1191 and forming two "hammer" candlesticks last week, with the critical 1223 level holding the price on several occasions.
If gold cannot break this resistance level very soon, it is likely that the bears will pounce and take the opportunity to push the price back down towards the 2014 lows. However, a break of 1223 should see gold move up first to 1237, then on to 1255-1260.
Equities remain near all time highs, reducing investment demand in gold as participants look for yield, the dollar is pushing higher after a short period of consolidation and oil remains weak.. These outside markets are contributing to the bearish overall picture in gold and it is difficult to see gold rallying strongly unless these markets change their well established trends.
Support can be found at 1195, 1191, 1180-1183, 1175-1178, 1167, 1154, 1145-1147, 1131, 1124, 1100, 1085, 1045 and 1000. Gold has bounced back after breaking below the critical 1180 level and is now moving higher after a classic "bear trap". The break of the intermediate down trend looks like it may have been a fake move in this difficult market.
Resistance can be found at 1220-1223, 1228, 1233, 1240, 1246, 1252-1256, 1271-1273, 1278, 1282-1284, 1290-1292, 1297 and 1303-1305. The break of the intermediate down trend appears to have been a fake move, with the price now headed lower again. A break of 1131 would be very bearish for gold and suggest a return to 1000-1050.