Gold powered higher yesterday, hitting the 61.8% retracement of the recent decline before finding resistance. The markey has also reached the 20 DMA and we expect the down trend, which we still consider to be the dominant trend, to resume from here.
Equities remain at or near all time highs and the dollar strength has taken the index close to 81 in recent days - these factors will limit gold's advance from here.
A surging Oil price, in all likelihood linked to the unrest in Iraq and Syria, has helped gold in recent days, though this kind of market driven reaction often reverses as quickly as it appears.
Support can be found at $1270, $1257-$1260, $1250-$1252, $1237-$1240, $1220-$1225, $1210, $1200 and $1180. A break of $1180 would have serious bearish implications for gold and suggest a decline to $1000-$1050 in the short term - this prospect now looks more likely and the break below $1250 gives us an indication of a likely eventual return to $1180.
Resistance can be found at $1277-$1280, $1283, $1289, $1293-$1296, $1304-$1305, $1309, $1314-$1315, $1319-$1322, $1330-$1332, $1340-$1342, $1352-$1354, $1392-$1395, $1400, $1420 and $1435. The failure to break above the 65 week MA suggests that the intermediate down trend remains in play.
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Gold Market Update: Gold Powers Higher
Published 06/13/2014, 01:26 AM
Updated 07/09/2023, 06:31 AM
Gold Market Update: Gold Powers Higher
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