Gold maintains gains into July

<p>Gold (daily chart shown below) has managed to maintain its gains of the past month after having risen substantially from its lows around 1240 in […]</p>

Gold (daily chart shown below) has managed to maintain its gains of the past month after having risen substantially from its lows around 1240 in early June.

This month-long rise has now recovered more than half of the declines in the price of gold that had occurred since the year-to-date high of 1392 was reached in mid-March.

With this partial recovery, the precious metal has shown a significant net gain from its long-term depths near 1180 at the very beginning of the year.

In the process, price action has broken out well above both the key 50-day and 200-day moving averages.

Gold technical analysis chart 02.07.14

Having so far reached a new three-month high this week of 1333 (which is also around the 61.8% Fibonacci retracement of the noted decline from the March 1392 high down to the June 1240 low), gold is currently at a critical price juncture.

Now trading around the 1325 support/resistance level, the precious metal’s upside momentum could likely continue further into the month.

On any strong breakout move above the current resistance and this week’s 1333 high, the major upside targets reside around the noted 2014 high of 1392 and then 1425 resistance.

Short-term downside support on any minor pullback currently resides around 1300.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.