Gold Edges Higher as Euro Pops
Posted 06-18-2010 at 06:19 PM by fastbrokers
Gold is edging higher today as the EUR/USD pops towards 1.24.
Investors are regaining confidence in the risk trade as EU leaders meet for a one day summit to discuss future plans for the union’s financial industry in an effort to lift investor confidence. Additionally, Spain announced it will release the results from its bank stress tests shortly. Both developments are allowing investors to feel more comfortable owning the Euro, boosting the risk trade across the board.
The fact that gold has held above $1230/oz in the midst of all this chatter shows the precious metal can also flex its negative correlation with the greenback if the risk trade kicks back in, making gold a solid asset considering its status as a safe haven as well. Meanwhile, we will have to see how the risk trade reacts to developments in from the EU summit along with today’s U.S. data set.
Technically speaking, gold faces technical barriers in the form of intraday and 6/8 highs. Additionally, the psychological $1250/oz level should continue to serve as a solid technical barrier should it be reached. As for the downside, gold has multiple uptrend lines serving as technical cushions along with 6/10 and 6/4 lows. Furthermore, the psychological $1200/oz should serve as a solid technical support should it be tested. Meanwhile, gold is running low on topside technical barriers, normally a positive sign for the near-term.
Disclaimer: The above information is provided for information purposes only and under no circumstances should be regarded neither as investment advice or as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained. All materials are property of Fast Trading services, LLC and unless otherwise indicated, any unauthorized reproduction is prohibited.
Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.
Jesse Richards is a Series 3 registered Commodities Futures Broker and a Principal of Fast Trading Services LLC (FastBrokers Home Page - FastBrokers | Futures | Forex | Commodities | Online Trading).
Investors are regaining confidence in the risk trade as EU leaders meet for a one day summit to discuss future plans for the union’s financial industry in an effort to lift investor confidence. Additionally, Spain announced it will release the results from its bank stress tests shortly. Both developments are allowing investors to feel more comfortable owning the Euro, boosting the risk trade across the board.
The fact that gold has held above $1230/oz in the midst of all this chatter shows the precious metal can also flex its negative correlation with the greenback if the risk trade kicks back in, making gold a solid asset considering its status as a safe haven as well. Meanwhile, we will have to see how the risk trade reacts to developments in from the EU summit along with today’s U.S. data set.
Technically speaking, gold faces technical barriers in the form of intraday and 6/8 highs. Additionally, the psychological $1250/oz level should continue to serve as a solid technical barrier should it be reached. As for the downside, gold has multiple uptrend lines serving as technical cushions along with 6/10 and 6/4 lows. Furthermore, the psychological $1200/oz should serve as a solid technical support should it be tested. Meanwhile, gold is running low on topside technical barriers, normally a positive sign for the near-term.
Disclaimer: The above information is provided for information purposes only and under no circumstances should be regarded neither as investment advice or as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained. All materials are property of Fast Trading services, LLC and unless otherwise indicated, any unauthorized reproduction is prohibited.
Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.
Jesse Richards is a Series 3 registered Commodities Futures Broker and a Principal of Fast Trading Services LLC (FastBrokers Home Page - FastBrokers | Futures | Forex | Commodities | Online Trading).
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