According to Standard Bank daily report, they said the precious metal could find support near to the level of $1250 USD/ Ounce of gold. The price starts cutting deeply into the cost curve. Resistance for gold is expected to reach the level of $1,300 USD/ Ounce. As a result, they expect gold to find increasing resistance upon the level of of $1,300 USD/ Ounce. ETF liquidation remains in place and the appetite to add new speculative length in the futures market remains low (as is indicative from the latest CFTC data).
We would look to see if gold can break above $1,300, which may see the metal retest $1,340 USD/ Ounce. However, we would see a rally
towards $1,340 USD/ Ounce as a function of short-covering rather than new length being added.
Gold support level is at $1,256 and $1,236 USD/ Ounce. Resistance level is at $1,300 and $1,319 USD/ Ounce of gold.
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