Gold At A $1200 Key Support Level
In the last seven days, gold has surged far from the 1200 US dollars key level, reaching 1220 US dollars, the highest level in seven weeks, before sliding back to the 1200 US dollars key level.
Gold was down to under 1185 US dollars level a few weeks ago, but in recent weeks spent most of the time high above 1150 US dollars level, and gained support from the current 1200 US dollars level. The goal still is to remain above the 1200 US dollars level in the coming weeks, and the situation will be interesting to follow. Before the move to 1200 US dollars level, gold didn’t fluctuate much, remaining steady on the 1150 US dollars support level. If gold went under 1150 US dollars, the next support level would be at 1130 US dollars. If gold soared under 1130 US dollars, it would have reached a record low level in the past few years. But, recently, as gold finally went above 1200 US dollars, it caused some potential downside, played out a few weeks ago.
In the last two weeks of February, gold had a firm grip on the key 1200 US dollars level, reached in multiple occasions. After that, a period of one month’s steady drop fallowed. In December last year, gold reached the 1200 US dollars level, going down from the 1240 US dollars resistance level.
After the Federal Reserve March meeting that discussed overseas risks and acknowledged a weak start of 2015, sport gold went further down on Wednesday. The Federal Reserve officials admitted the possibility of an interest rate hike in June, which surprised numerous experts, who forecasted the hike to occur in the end of the year.