4 Feb 2014
Gold rebounds from $1,240 but fails to hold above $1,260
FXStreet (Córdoba) - Spot gold finished Monday with a gain of more than $10, around $1,256 after making a rebound from $1,243. With recent rally gold trimmed most of Thursday’s losses when it dropped more than $20.
Last week, gold posted the first weekly decline after rising in the previous five, losing upside momentum. The price area located around $1,240 continues to offer support. Gold traded below the mentioned level but it was rejected.
On Monday after the release of US economic information (ISM manufacturing index), that came worst-than-expected, the price of the ounce jumped from $1,250 to $1,266 reaching the strongest level since last Thursday. But afterwards, moved away from the highs, pulling back toward $1.257.
Resistance level could be located at $1,260, $1,266 and above at $1,270 (January 29 high) and $1,275. To the downside support might lie at $1,254 (American session low), $1,247 and $1,240.
Last week, gold posted the first weekly decline after rising in the previous five, losing upside momentum. The price area located around $1,240 continues to offer support. Gold traded below the mentioned level but it was rejected.
On Monday after the release of US economic information (ISM manufacturing index), that came worst-than-expected, the price of the ounce jumped from $1,250 to $1,266 reaching the strongest level since last Thursday. But afterwards, moved away from the highs, pulling back toward $1.257.
Resistance level could be located at $1,260, $1,266 and above at $1,270 (January 29 high) and $1,275. To the downside support might lie at $1,254 (American session low), $1,247 and $1,240.