Market Overview

Let's Keep It Simple: Stock's Down Gold Up:

Let's Keep It Simple: Stock's Down Gold Up:
GCM4- ​Gold is back above 1300 early this morning after reversing in a violent fashion during yesterday’s session. Gold traded to a low of 1268.4 early in yesterday’s session, the lowest level since February 10th and making sure to clear stops by taking out recent lows by nearly $10. As yesterday was May option expiration we should not be surprised to see some irrational price action. Once the market got back above resistance at 1281.8-1284.4 longs who got squeezed out chased the tape to get back in causing the metal to reach yesterday’s high of 1299 early in the session. Gold has reached a high of 1303.1 early in today’s session stretching just above the 200 day moving average which comes in at 1302. A close above the 200 day moving average will give the bulls a chance to take control ahead of next week’s FOMC meeting. Look for first support to come in at 1290.4-1293.5 on the session. The 100 day moving average comes in at 1280.5 and this will act as a major line in the sand support on pull backs; only a close back below here will signal a failure and continuation of the bear leg. Traders must watch the equity market as weakness, whether it may be geopolitical concern, earnings or purely an overbought market has caused a flight to safety in Gold.


Resistance- 1302***, 1304.8-1307.6*, 1312.3-1314**

Support- 1290.4-1293.5**, 1287.6*, 1284.4*, 1280.5***, 1262.6***, 1237.5**, 1220-1223.6**, 1211***

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.


Related Articles

View Comments and Join the Discussion!