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Saturday, July 27, 2013

Gold Supported by Oil at Yearly High; USD Near Record Lows



October 19, 2009 by · Leave a Comment 

Mark O’Byrne submits:

Gold
Gold is currently trading at $1,055.60/oz. With oil reaching a new high for the year above $79 a barrel, and the Federal Reserve signaling interest rates will stay near record lows for the foreseeable future, the beleaguered greenback fell to a 14-month low on the dollar index. The poor jobs number on Friday left lingering doubts regarding the sustainability of the recovery and this also supported gold.

Gold had another higher weekly close last week which is important from a technical perspective. This could lead to technical traders and momentum funds increasing their long positions and possibly creating a short squeeze. If there is period of profit taking, there is likely to be support at previous resistance between $1,020/oz and $1,030/oz and strong support at $1,000/oz.

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