Gold Tests Both Ends Of 5 Day Range

em>Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Gold futures are trading lower by $9 at $1185.40 in Wednesday's session. Beside a brief jaunt to $1204.70 on Monday, the contract has been in a very tight trading between range between between $1180.20 and $1196.40. In today's session, it has tested both ends of the trading range. During premarket trading it approached the upper-end of the range, but came up shy only reaching $1995.60. Around 1:00 PM it pierced the bottom of the range breachng the lower boundary, but going no lower stopping at $1179.10 but then quickly rebound and is consolidating at the $1185 level. Longer-term, gold has been in trading range as well. Since March 20 it has been in a trading range between $1169.70 to 1232.90, zigzagging above and below the strong psychological level of $1200. Posting a series of close on either side and then reversing course. With no catalyst on the horizon, it may continue this consolidation pattern, until the Fed finally raises rates or a geopolitical event ignites a flight to quality.