Gold nearly h8it $1200/oz yesterday before the markets got struck by rumors that Spain will need over 200 billion Euros of aid to get its fiscal house in order. The news shook the FX markets, sending the EUR/USD well below 1.30 and dragging the risk trade as a whole lower. Despite gold's allure as a safe haven, its risk correlation won out and the precious metal nearly hit $1150/oz today. Conditions in the EU only worsened with Portugal joining the mix after Moody's warned that it is reviewing the country's fiscal status for a possible downgrade. Additionally, protests in Greece turned deadly, certainly not a promising development for the already an already fragile psychological state around the globe. Regardless of its 24 hour downturn, gold hasn't sacrificed any important technical supports at this point and its status as a safe haven could return. Regardless, it will be interesting to see how gold behaves and which correlative forces take control of the precious metal. News will continue to flow tomorrow with an ECB monetary policy decision, UK parliamentary elections, and weekly U.S. unemployment claims on tap. That being said, markets could be very active for the rest of the week.

Technically speaking, gold faces technical barriers in the form of the psychological $1175/oz and $1200/oz areas. As for the downside, gold still has multiple layers of uptrend lines to fall back on along with the psychological $1160/oz and $1150/oz levels. Additionally, 4/27 lows could serve as a solid technical cushion should they be tested.

Present Price: $1165.21/ oz
Resistances: $1166.21/oz, $1168.71/oz, $1170.77/oz, $1172.43/oz, $1174.22/oz, $1176.39/oz
Supports: $1163.14/oz, $1161.53/oz, $1160.14/oz, $1156.45/oz, $1153.92/oz, $1151.15/oz
Psychological: $1200/oz, $1175/oz, $1160/oz, $1150/oz, May highs