The yellow metal price has been consolidating in a tight range between 1215.00 and 1165.00, a low is made at 1169.70. The yellow metal concentrating on Greece saga. In case of Grexit, the metal is likely to edge higher. The soft USD supported the gold price as well.Greece made € 750 million repayment to the International Monetary Fund. Greece has to reach a reform deal with international creditors until June. Greek finance minister Yanis Varoufakis noted that the Greece’s liquidity problem is a “terribly urgent issue». Greek exit from the eurozone will influence the economy.
At yesterday’s session, the metal spiked to $1,196.80 (rejected at 61.8FE). The strong resistance zone is seen between $1,197.00 and $1,200.00. We recommend safe buying above $1,200.00 (like $1,206.50/$1,208.00). Intraday support is found at $1,186.50 and $1,185.00. We recommend selling below $1,185.00 with target at $1,183.00, $1,179.00, later $1,175.0 and $1,172.00. The strong support is found at $1,165.00. A daily close below $1,165.00 leads to $1,147.00 in the medium term. In the daily chart, lower lows and lower highs formation is developing. However, the double bottom was placed at $1,178.50 in the hourly chart, which is a higher low. It favors bulls in the near term. In case the price closes below $1,178.50, bears are likely to drive towards $1,176.00, $1,170.00, $1,168.00, and even $1,165.00/$1,163.00. The intra-week trading pattern is framed between $1,178.00 and $1,198.00/1200.00.
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