10 Dec 2013
Gold finally trading a bit higher as DXY gets hit again; 1251.50 is resistance level to watch
FXstreet.com (Barcelona) - Gold is on the rise Tuesday in Asia as the greenback is getting hit again and forex pairs like the EUR/USD break out above important technical resistance levels.
Gold still appears to be in a corrective move higher – not a new bull trend
Gold and silver are finally showing a pulse after basically doing their best imitation of sinking rocks for weeks. Still though, the chart of gold indicates that a lot more work needs to be done to repair the damage done recently. With the DXY seemingly (and inexplicably given the recent bullish data out of the US recently) in free fall for the time being, this is THE opportunity for the metals to get their work boots on and to make some progress on the upside.
Technical outlook for gold
Technicians say that if the bearish scenario plays out that the ultimate downside target for gold is 1,065. However, gold would likely see some buying interest at the 6/28 low of 1179.80 and the Fibonacci projection of 1172. Resistance comes in at last Wednesday’s high of 1251.50 and is followed up by the 11/12 low of 1260.50.
Gold still appears to be in a corrective move higher – not a new bull trend
Gold and silver are finally showing a pulse after basically doing their best imitation of sinking rocks for weeks. Still though, the chart of gold indicates that a lot more work needs to be done to repair the damage done recently. With the DXY seemingly (and inexplicably given the recent bullish data out of the US recently) in free fall for the time being, this is THE opportunity for the metals to get their work boots on and to make some progress on the upside.
Technical outlook for gold
Technicians say that if the bearish scenario plays out that the ultimate downside target for gold is 1,065. However, gold would likely see some buying interest at the 6/28 low of 1179.80 and the Fibonacci projection of 1172. Resistance comes in at last Wednesday’s high of 1251.50 and is followed up by the 11/12 low of 1260.50.