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Gold Market Update: Upward Momentum Fades

ByGoldTradingExperts.com
Published 02/27/2014, 06:39 AM
Updated 07/09/2023, 06:31 AM
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Gold slid yesterday after making a high of $1345, dropping sharply as upward momentum faded. The charts are now showing a bearish RSI divergence on the daily chart, however gold has found support at the 200 hour MA around $1325 thus far.

The new uptrend is now unmistakeable in gold and we expect further gains after a short correction here, with Wave 3 to take gold much higher.

The dollar found some buying interest yesterday, as did equities, which led to profit taking in gold - it is clear that these two outside markets remain the most important ones to watch at the moment, with the oil price haivng less effect on gold than it usually does.

A break of 80 for the dollar would be very bullish for gold, whilst a break above 81 would cap any gains and put gold under pressure.

Support can be found at $1322, $1312-$1315, $1307, $1295-$1300, $1280, $1275, $1250-$1255, $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, though this is looking increasingly unlikely.

Resistance can be found at $1330-$1332, $1340, $1350, $1360, $1377-$1380, $1395-$1400, $1420 and $1435. The breakout above $1300 suggests an end to the intermediate term down trend and that a significant rally is now developing.

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