Gold trade in tight range between moving averages

Gold  |  2012-07-30 22:58:51   |   By

Gold is holding between moving averages, said Alex Thorndike, senior trader, precious metals and foreign exchange for MKS Capital, after testing $1,630 an ounce on Friday.

NEW YORK (Scrap Monster): Gold is holding between moving averages, said Alex Thorndike, senior trader, precious metals and foreign exchange for MKS Capital, after testing $1,630 an ounce on Friday.

Resistance in the short-term is layered between $1,630 and $1,641, with the next major target the 200-day moving average at $1,655.45, he added.

The first support is seen at the 100-day moving average of $1,614.95; secondary support is at the March bear channel upper trend line which sits currently at $1,598. Thorndike noted that “will have to be held to maintain the bullish market tone.”

At 8:23 a.m. EDT, August gold futures on the Comex division of the New York Mercantile Exchange are down $1.40 an ounce at $1,616.60.