Back
29 Jun 2015
Gold bulls jump in for a safe haven on Greece debacle
FXStreet (Guatemala) - XAU/USD (Spot Gold) is currently trading at $1,175 with a high of $1,179 and a low of $1,168.
The yellow metal is back with the bulls after a 10 dollar round trip on the Greek drama over the weekend as markets opened with volatility today. Initially, Gold got a boost as investors fled for safety, rising to its highest level in nearly week, up 1%
The Greek parliamentary decision to hold a referendum for the 5th July as the ECB has decided not to increase emergency funding to Greek banks sent markets off in early Asia. This lead to Athens having no choice but to put capital controls in place and shut the banks until 7th July. Meanwhile, Greece are will be unable to pay the IMF the 1.6b USD which may mean Greece will be leaving the EZ and this will impact negatively on the global financial system, offering Gold a boost. Else where, the CFTC report showed that investors were net long of the precious metal on Friday.
Technically, the yellow metal has RSI (14) back to a bearish bias at 59 and remains within the broader bearish trend below $1,182 resistance and $1,176. On the 4 hour charts, we are supported here at key levels while 1162 comes as the June low.
The yellow metal is back with the bulls after a 10 dollar round trip on the Greek drama over the weekend as markets opened with volatility today. Initially, Gold got a boost as investors fled for safety, rising to its highest level in nearly week, up 1%
The Greek parliamentary decision to hold a referendum for the 5th July as the ECB has decided not to increase emergency funding to Greek banks sent markets off in early Asia. This lead to Athens having no choice but to put capital controls in place and shut the banks until 7th July. Meanwhile, Greece are will be unable to pay the IMF the 1.6b USD which may mean Greece will be leaving the EZ and this will impact negatively on the global financial system, offering Gold a boost. Else where, the CFTC report showed that investors were net long of the precious metal on Friday.
Technically, the yellow metal has RSI (14) back to a bearish bias at 59 and remains within the broader bearish trend below $1,182 resistance and $1,176. On the 4 hour charts, we are supported here at key levels while 1162 comes as the June low.