TenkoFX - Analytics

TenkoFX

413.75 7.25/10
61% of positive reviews
Real

Gold retreats from near 2-year tops, back below $ 1350 Dhwani Mehta

Gold stalled its bullish run and retreated sharply below $ 1350 mark, after having jumped to near two-year tops amid political uncertainty in Australia, while the Brexit vote still weighs on the investors’ sentiment.Gold back below $ 1350 markCurrently, gold trades 0.349% higher at $ 1328.10, having posted day’s high at 1329.83 and day’s low at 1320.59. Gold prices saw a quick reversal from near multi-month highs as markets booked profits after the spot ran into a strong resistance just shy of 2016 highs posted last month at $ 1358.41. Moreover, a pick-up in risk-on sentiment amid positive equities also weighed down on the safe-haven gold.Gold prices kicked-off the week on a stronger footing, flying through the roof earlier on the day as weekend’s close Australian elections and looming Brexit worries underpinned the safe-haven bids for the bullion. While the yellow metal also tracked its counterpart – Silver higher, after the latter exceeded $ 20 mark for the first time in almost two years this Monday.Meanwhile, the sentiment around gold is likely to remain underpinned after the holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, showed a rise of 0.41%to 953.91 tonnes on Friday, the highest since July 2013. More so, hedge funds and money managers raised their bullish positions in COMEX gold and silver contracts to record highs in the week to June 28.Looking ahead, markets will continue to monitor development surrounding the Brexit decision as well as the Australian elections outcome ahead of Wednesday’s FOMC minutes release.Gold Technical Levels                                    The metal has an immediate resistance at 1358.41 (2-yr high) and 1365 (round number). Meanwhile, the support stands at 1340 (1h 20-SMA) below which doors could open for 1328 (5-DMA).



To leave a comment you must or Join us


By visiting our website and services, you agree to the conditions of use of cookies. Learn more
I agree