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After having fluctuated into the side channel between 1,518 $/oz and 1,532 $/oz for some days, Gold has reached and broken the resistance at 1,532 $/oz. Currently, the Yellow Metal has increased up to 1,536 $/oz and now is heading to the level 1,550 $/oz.

Thin volumes and low volatility are marking today, with prices that are fluctuating in a spread of 1.5 $ because of the closing of the London market for the Spring Bank Holiday and the closing of the American market for the Memorial Day. However, the pressure on the Yellow Metal remains strong, supported by the worries on the European future. In fact, concerns on Belgium, Italy and especially Greece, renewed investor uncertainty, which again came back to invest in physical Gold to hedge against the systemic financial risk. For what concern the physical market, news from China hypnotize that the demand for the bullion would increase in the next three years by 22%, as investors continue to choose the Yellow Metal in preference to Equities, Properties and Savings. Many important macroeconomic news are expected from the U.S. during this week: Chicago Purchasing Manager (05/31), Consumer Confidence (05/31), ISM Manufacturing (06/01), Jobless Claims (06/02), Non-Farm Payrolls (06/03) and Unemployment Rate (06/03). The focus remains high on the interest rate decision that will be taken next week by the ECB.

From the financial point of view, Gold ETFs have strongly increased the amount of physical Gold held, reaching 2,074 Tons.

From a technical point of view, Gold tested the resistance at 1,532 $/oz for some days until its upward breaking; now Bullion is stable on 1,536 $/oz. For the short term it is possible that the Yellow Metal will consolidate above this threshold and try to reach the 1,550 $/oz. In the medium-long term the uptrend remains intact.

First support at 1,532 $/oz and first resistance at 1,539 $/oz.

We recommend extreme caution in taking positions because of the volatility and uncertainty.