Gold trimmed its gain, sliding down to 1,174. Gold traded in disappointing fashion as the yellow metal return all of its opening gain to trade at the low of 1,174. As the Greek debt crisis continues to unravel and produced no weekend agreement with the European Union, Gold firmed on Monday opening, gaping around $10 higher (full gap up to 1,184) at the open. Interestingly, the short covering itself was short lived, as the day unfolded had the yellow metal paring its gain. As the sentiment effectively canceled the safe haven appeal’s of gold, it looks rather difficult for the precious metal to continue seeing much better price appreciation in the short term.
A dismayed day for the precious complex considering the turmoil and uncertainty surrounding the Greek situation. Gold started the day strongly, gaping close to $10 higher at the open. However the momentum was short lived as the metal started drifting lower throughout the day. As the high at 1,184 failed to push the metal any further, price eventually fell thereafter (breaching past the 23.60% Fibonacci Retracement level meanwhile). Closing the day at 1,177, the safe haven bid for gold has surprisingly failed to materialize and that could spell a near-term technical advantage for the Gold bears.
Added itself to a global selloff in the commodity market, Gold price is trading at the middle range between 1,174 – 1,184 (on the H1 chart). Technically, price is likely to remain in the aforementioned range, which in the very short-term should candlesticks fall through the blue embolden uptrend line, would open the door for a move back toward the previous support at 1,174. Gold traders will continue to monitor unfolding developments in Greece closely. The uncertainty regarding the crisis has drawn safe haven buying interest into the marketplace and will likely act as a support and floor for the yellow metal in the near term.