The euro gave up much of its earlier gains as denial reports came out regarding IMF aid for Italy of around E600billon
City Index November 28, 2011 1:00 PM
<p>Gold Range: 1,692.47 – 1,708.47 Support: 1,672.00 Resistance: 1,710.00 Gold prices fell back again on Friday as the market resumed after the Thanksgiving Holiday, […]</p>
Gold prices fell back again on Friday as the market resumed after the Thanksgiving Holiday, but moves were erratic with the extended weekend break. The metal opened at 1,695.50 and fell sharply as the dollar found broad based strength following poor Italian auctions and the euro-dollar triggered option barriers. Gold fell to 1,672.05 before a bounce to 1,698 as stocks rallied, but the move was short lived with a slump into the weekend to 1,681.15. Asian markets have been buoyed by weekend press reports of a possible IMF bailout for Italy, but this has since been put into question. Despite the denial via Dow Jones from some officials, the metal has risen sharply this morning to 1,708.73. Support today is seen at 1,672 and 1,666.70, with resistance at 1,710 and 1,726.60.
Euro-dollar closed in New York at 1.3245 on Friday, the late recovery to 1.3300 knocked back by S&P’s Belgium downgrading. Weekend press reports of IMF readying a E600bln loan for Italy, as well as early reports of strong Black Friday sales in the US provided early risk appetite into early Asia, with euro-dollar quickly being marked higher, pushing on to mark session highs at 1.33445. A denial from the IMF saw the rate drop back to 1.3280, but dips found support as equity markets held firm. The rate was trading around 1.3300 into early Europe. Bids remain at 1.3275-1.3270, with stops below. A break to open a deeper move towards 1.3245-1.3240 ahead of 1.3212. Resistance at 1.3345-1.3350.
Cable closed in New York at 1.5450, getting marked up into early Asia. The rate pushed its way to an overnight high of 1.5525 before settling between 1.5490/1.5520 through to the European open. Euro-sterling opened back above 0.8600, marking highs at 0.8615 before slipping below the figure to mark lows at 0.8570 as cable retained a more buoyant tone than euro-dollar following the mentioned IMF denial. The cross is seen resting on the overnight lows into early Europe. Cable offers remain at 1.5525-1.5230, a break to allow for a move on towards 1.5550 ahead of 1.5580-1.5585. Support at 1.5450 and 1.5423-1.5525, a break to expose the stronger level at 1.5423.
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