Due to the overall optimism currently seen in capital markets around the globe, gold initiated a price rally on Wednesday. Yesterday’s US macroeconomic stats proved to be strong, thus reassuring investors. However, the strengthening of the US Dollar hindered yesterday’s rally in the market of precious metals.
At the end of the trading session, the gold futures for December delivery appreciated by 0.035 up to $1606.60/oz in New York (Comex).
According to James Moore, an analyst at TheBullionDesk.com, gold cannot overcome a certain level of resistance because of oil prices and stock market behavior.
In 2011, gold appreciated by 10% while in Q2 2012 it lost in price 4%.
The chart below, courtesy of , reflects the current state of affairs in the market of gold futures. The recovery was strong. Therefore, after a short period of consolidation we may see another upswing. The key level of resistance is currently located at 1607. A break below 1589-1584 will indicate a retracement or a trend reversal.
