Gold – Remaining Steady Around $1185

Stuart McPhee

It eased back to the key $1200 level to finish out last week, before starting this week easing lower again.  It still has its eyes firmly on the key $1200 level and it will be interesting to see whether it can remain within reach of this level. Prior to the recent move, gold remained quite steady enjoying strong support from the $1150 level whilst some eyes would have been looking lower.

The next obvious technical support level lower is around $1130, and if it was to move through this level, then it would be trading at multi-year lows and looking very bearish. When gold broke through the rock solid support level at $1200 recently, it opened itself up to some potential downside which was played out a couple of weeks ago.

Throughout the second half of February gold enjoyed rock solid support from the key $1200 level which held it up on numerous occasions. For about a month gold drifted steadily lower down to a one month low near the key $1200 level before finding the solid support at this key level.

(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 below 65% as it eased lower below the key $1200 level. The trader sentiment is in favour of long positions.

Read More: www.marketpulse.com/20150331/gold-remains-steady-around-1185/