Gold climbs on Safe-Haven Demand – 06 January, 2015

Gold prices increased on Monday to log their highest resolution in nearly three weeks as political disorder in Greece and weakness in equities urged demand. European shares were under demands after the Greek bourse continued to fall and sharp falls in local inflation numbers out of Germany stoked fears of deflation. Both the Dow Jones and S&P 500 had their most awful day in about three months, with energy shares leading the rejection. In the meantime, Asian stocks are extending their losses.

As the expensive metal tends to gain during times of uncertainty, the foremost equity markets and USD/JPY pair will be on my radar. If we observe deeper corrections, market participants may decide to move their money from stocks to the gold market. Buying interest around the $1170(/63) area caught my concentration and that makes me consider that the odds are favoring higher prices right now. Technically, trading above the Ichimoku clouds on both the 4-hour and daily charts gives the bulls an advantage.

Gold Rises on Safe-Haven Demand 06-01-15

The first difficulty gold needs to jump is positioned around the 1212 level. If the bulls manage to get higher and hold prices above that level, they may find a new possibility to test the next resistance at 1221. I assume breaking through this level is important for a bullish continuation towards 1235/40.

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Nevertheless, if the market meets heavy resistance and starts to spin, wait for to see support at 1193.54, 1190 and 1186 level. Closing below the 1186 support level would suggest that the bears are going to target 1180 next.

Gold Rises on Safe-Haven Demand 06-01-2015

Gold prices increased on Monday to log their highest resolution in nearly three weeks as political disorder in Greece and weakness in equities urged demand. European shares were under demands after the Greek bourse continued to fall and sharp falls in local inflation numbers out of Germany stoked fears of deflation. Both the Dow Jones and S&P 500 had their most awful day in about three months, with energy shares leading the rejection. In the meantime, Asian stocks are extending their ...
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