14 Oct 2013
Gold enters the new week broken technically and with little fundamentally in its favor
FXstreet.com (Barcelona) - Gold doing poorly when the DXY falls and even worse when it rallies – not a pretty picture.
Gold bugs’ only hope seems to be US collapse
Gold futures were trading sluggish going into last week – and that was with a bearish DXY. Then, last week the DXY rallied on the unwinding of the “American Armageddon” trade when news of a possible budget resolution – and gold just got hammered. Seemingly, the only hope for gold bulls is for real geo-political calamity to arise from the possible failure of US politicians to reach a resolution prior to the 10/17 debt ceiling deadline.
Technical outlook for gold
Technicians say that gold futures did not even make it up to the anticipated level 1337 before turning back to the downside and now breaking support at 1276. According to Elliott Wave technicians, gold appears to be in a wave “(iii) of iii” move lower with short-term targets of 1224 and 1206. Resistance is the 1276 level and the 1337 level above that.
Gold bugs’ only hope seems to be US collapse
Gold futures were trading sluggish going into last week – and that was with a bearish DXY. Then, last week the DXY rallied on the unwinding of the “American Armageddon” trade when news of a possible budget resolution – and gold just got hammered. Seemingly, the only hope for gold bulls is for real geo-political calamity to arise from the possible failure of US politicians to reach a resolution prior to the 10/17 debt ceiling deadline.
Technical outlook for gold
Technicians say that gold futures did not even make it up to the anticipated level 1337 before turning back to the downside and now breaking support at 1276. According to Elliott Wave technicians, gold appears to be in a wave “(iii) of iii” move lower with short-term targets of 1224 and 1206. Resistance is the 1276 level and the 1337 level above that.