Sentiment Send Oil and Gold Higher in Asia
Gold picked itself up off the floor Friday, propelled by weaker U.S. CPI and Retail Sales numbers, to rise a stunning 18 dollars to trade as high as 1233.00 before closing at 1228.00. Gold should continue to benefit as yet another set of weak U.S. data forces the world and possibly the Federal Reserve, to reassess the trajectory of U.S. interest rates.
The key resistance level at 1230.50, the 200-day moving average, remained intact as of Friday’s close. This morning though, Asia has seized on Friday’s move with gold trading through this level to 1232.00 in early trading. Precious metals, in general, should find support on any dip in the early part of the week as Friday’s fallout continues.
Gold’s next major resistance lies around 1240.00 and then 1247.70, the 100-day moving average. The 1230.50 should be an intra-day pivot with nearby support at 1226.50 and then 1218.50
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