Gold is presently trying to hold onto $1195 after dropping sharply through the $1200 level in the last 24 hours In the last couple of weeks, gold has traded in a narrow range right around the key $1200 level. It seems gold has an attraction to the key $1200 level as every time it ventures away it returns quickly to trade right around it. A few weeks ago gold sprung to life surging higher away from the key $1200 level back to a seven week high above $1220 before easing back and finding some support at the key $1200 level. Several weeks ago gold eased a little for a few days to below $1185, although for the best part of the last few weeks gold has moved strongly off the support at $1150 and then found some new support from the $1200 level. It still has its eyes firmly on the key $1200 level and it will be interesting to see whether it can remain above this level and continue to receive support. Prior to the recent move, gold remained quite steady enjoying strong support from the $1150 level whilst some eyes would have been looking lower.

Throughout the second half of February gold enjoyed rock solid support from the key $1200 level which held it up on numerous occasions. For about a month gold drifted steadily lower down to a one month low near the key $1200 level before finding the solid support at this key level. At the beginning of December gold eased lower away from the resistance level at $1240 yet again back down to below $1200. During the second half of November gold made repeated runs at the resistance level at $1200 failing every time, before finally breaking through strongly. Throughout the first half of November Gold enjoyed a strong resurgence back to the key $1200 level where it has met stiff resistance up until recently.

Throughout the second half of October gold fell very strongly and resumed the medium term down trend falling from above $1250 back down through the key $1240 level, down below $1200 to a multi year low near $1130. It spent a few days consolidating around $1160 after the strong fall which has allowed it to rally higher in the last couple of weeks. Earlier in October Gold ran into the previous key level at $1240, however it also managed to surge higher to a five week high at $1255. In late August Gold enjoyed a resurgence as it moved strongly higher off the support level at $1275, however it then ran into resistance at $1290. In the week prior, Gold had been falling lower back towards the medium term support level at $1290 however to finish out last week it fell sharply down to the previous key level at $1275.

Gold held on to overnight losses on Tuesday, trading below the key $1,200 an ounce level, as a rally in global equities and a firmer dollar dented the metal’s appeal as a haven. Spot gold was little changed at $1,195.80 an ounce by 0039 GMT, after losing 0.7 percent on Monday. The dollar rose broadly on Monday, with the euro sliding more than half a percent against the U.S currency, on growing concern that Greece may default on debts. Athens is in negotiations with its euro zone partners and the International Monetary Fund over reforms required to unlock remaining bailout funds. Public sector entities in Greece were ordered to transfer idle reserves to the central bank to help with a cash squeeze. The Greek crisis would have typically boosted safe-haven appeal for bullion. But the strength in the dollar, along with a sharp rally on Wall Street, offset any such bids. Equity markets rebounded on Monday after China took steps to stimulate its economy and Wall Street also rose on corporate earnings.