Spot Metals : XAUUSD (Gold)
In need of another moderately important Middle East of North African country to implode, Gold (and Oil) will undergo a hefty correction if traders perceive relative calm is prevailing in coming days.
• Spot Gold has seen an average trading range of about 41 dollars per week over the past half year, which theoretically puts 1370 and 1450 in range for coming days.
• That it could go either way, to 1420 or so, or 1380 is a safer bet, but a punt all the same given real-time news flow and the way traders interpret it is key for now given the fluidity of the situation.
• A breach of initial support at 1404, even 1400 is possible Monday, but with a decent cluster of support from 1383 to 1388, it would take a news supported breakdown and close well below this range to stun the bulls – at least for a while.
• More bad news, like Algeria succumbing to chaos would however see 1417-1420 taken out in a flash.