ixic Posted March 1, 2016 Report Share Posted March 1, 2016 Gold Sees Some Profit Taking As Risk Appetite UpticksTuesday March 01, 2016 14:16 (Kitco News) - Gold saw some profit-taking pressure set in Tuesday, following recent gains. An improved risk appetite on this day also worked against the safe-haven metal. Still, some profit taking and chart consolidation is not unhealthy for a market like gold, which is in a firm near-term price uptrend. April Comex gold was last down $3.10 at $1,231.10 an ounce. There was a heavy slate of U.S. economic data due for release Tuesday, including the U.S. manufacturing PMI, construction spending, the ISM manufacturing report on business, and domestic auto industry sales. The data was a mixed bag but was upbeat, overall. That helped to boost the U.S. stock market and the U.S. dollar index, and put some downside pressure on gold. Global stock markets were also mostly higher Tuesday, despite some dour economic news coming out of China. China’s manufacturing purchasing managers’ index (PMI) came in at 49.0 in February--the lowest level in over four years. A reading of 49.4 was expected. A figure below 50.0 suggests contraction in the sector. The downbeat China PMI report led to further speculation that China’s central bank will implement further monetary policy easing moves, and that was actually a bullish element for Asian equities Tuesday. China’s central bank on Monday lowered its reserve requirement ratio for banks. Technically, April gold futures prices closed nearer the session low. Prices are still in a 2.5-month-old uptrend on the daily bar chart and bulls have the firm overall near-term technical advantage. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the February high of $1,263.90. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,200.00. First resistance is seen at $1,240.00 and then at $1,250.00. First support is seen at $1,225.00 and then at this week’s low of $1,216.30. 1 Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.