Gold price tumbles on reports of de-escalating Middle East tensions
Gold plunged 3% after Axios reported that Israel and Lebanon have accepted the terms of a ceasefire agreement.
Today’s gold trade was very choppy and volatile once again today as the August Globex contract covered a $14.30 range. Gold closed over the $1230.00 level which is technically significant…
Gold traders had taken profits the previous two sessions as traders read between the lines and are anticipating a raise in interest rates sooner than based off comments from Fed Boss Ben Bernanke which include “THE tight credit is restraining commercial real estate” and “Inflationism likely to remain subdued”….. and as we Gold traders know anytime you put “rate hikes” and FOMC in the same sentence Gold normally heads south….
It appears that the Flight to “safer haven” physical bullion buying out weighs fears of rate hikes…especially globally as the world economic and geo-political tensions are are forcing investors to choose gold as their currency of choice.
RESISTANCE # 2……………$1241.00
RESISTANCE # 1……………$1236.00
PIVOT…………………………..$1227.00
SUPPORT # 1………………..$1222.00
SUPPORT # 2………………..$1213.00
Mike Daly / Gold Specialist
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*THERE IS EXTREME RISK TRADING FUTURES, OPTIONS, and FOREX*
