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Gold Market Update: Gold Closed Around $1261

ByGoldTradingExperts.com
Published 12/11/2013, 11:30 PM
Updated 07/09/2023, 06:31 AM
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We noted yesterday that gold looked like it was trying to form a "double bottom" at $1211 and attempting to move higher - this turned out to be correct as gold surged through resistance at $1250-$1260, breaking out of the down trend channel and moving as high as $1268 before finding resistance and falling back to close around $1261.

This morning, gold is holding the $1250-$1255 area that is now acting as support, though has not yet managed to build on yesterday's strong gains.

The dollar weakness is persisting, which is aiding gold's rally, whilst a resurgent oil price is also adding to the bullish mood in gold. We continue to believe that a major rally in gold will not begin until equities correct substantially, though we expect a short term rally to unfold here.

Support can be found at $1250-$1255, $1240, $1235, $1223-$1227, $1217, $1212, $1200-$1207 and $1180. A break of $1$180 would have serious bearish implications for gold and suggest a decline to $1000-$1050 in the short term.

Resistance can be found at $1268-$1270, $1277-$1280 and $1291-$1295. A break above $1260 would suggest an end to the short term down trend, though it would take a break of $1300 to suggest a more significant rally was developing.

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