Gold Traders Look For Direction From Outside Markets:
Gold traded more than $10 from the highs on Friday in what can only be described as profit taking ahead of a long weekend after a failed second attempt to get through resistance. Gold saw a pop on the open last night placing it back towards the middle of the range in the last 24 hours and at the important pivot level, 1688. Headlines this morning anticipate aggressive monetary easing out of Japan following a policy meeting Tuesday; until a 2% inflation target is reached. This coupled with Goldman Sachs announcing an $1825 target in Gold over the next three months (caused by debt ceiling issues) should help drum up a bid for Gold to test through major resistance and print 1700, anything shy of this by mid week will be very disappointing. A new session low below 1684.8 is discouraging but only a close below the 1682.1 retracement level is negative. Furthermore a close below 1678.8 will likely cause further liquidation but only a close just below the 200 day moving average and low of 1666.4 will cause a bearish reversal. Look for a move above major resistance at 1696-98 to create a potential breakout as shorts and gold bugs alike buy the rally.
(NYMEX products trade until 12:15 CT)
Resistance - 1696-98***, 1704.5*, 1709, 1712.8**
Support - 1684-82**, 1678.8**, 1671, 1666.4***
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.