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22 Apr 2014
Gold under pressure, but beware of a reversal
FXStreet (Buenos Aires) - Dollar upward momentum helped Gold post a fresh 3 week low of $1279.86/oz with US opening, albeit greenback strength recedes as the session goes by: stocks are sharply up in Europe and the US, finally waking up from the long Easter holiday weekend.
The metal managed to bounce back a couple of bucks after posting mentioned low, although remains under selling pressure, trading below $ 1285, immediate Fibonacci resistance according to Valeria Bednarik, FXstreet chief analyst. Further falls below daily low should lead to a test of next short term support around $1263/oz.
Nevertheless, she warns that “escalating tensions in Russia and Ukraine may finally blast into runs to safety, and gold seems a pretty nice option: in that case, a run above $12300 may extend up to $1390 area and even challenge this year high.”
The metal managed to bounce back a couple of bucks after posting mentioned low, although remains under selling pressure, trading below $ 1285, immediate Fibonacci resistance according to Valeria Bednarik, FXstreet chief analyst. Further falls below daily low should lead to a test of next short term support around $1263/oz.
Nevertheless, she warns that “escalating tensions in Russia and Ukraine may finally blast into runs to safety, and gold seems a pretty nice option: in that case, a run above $12300 may extend up to $1390 area and even challenge this year high.”