16 Oct 2013
Gold posts bullish reversal on renewed nervousness about the ongoing DC shenanigans
FXstreet.com (Barcelona) - Gold started Tuesday off tumbling hard on DC optimism and DXY strength. Throughout the session, however, doubts about the negotiations process crept back into the fray – forcing the DXY lower and boosting gold.
Gold bugs’ only hope remains a ramping up in US dysfunction
Gold futures are clearly being bought when there is a rise in uncertainty surrounding the DC situation. Traders are beginning to “expect” things to happen by certain times. When the expected news doesn’t arrive on-time, the markets are very actively expressing their disappointment by buying safet assets and selling risk assets..
Technical outlook for gold
Technicians say that gold futures are now “broken” after closing below 1276 the other day. Bounces like today’s are to be treated as opportunities to sell longs or get short they say. 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 10/11 peak at 1294.80 level.
Gold bugs’ only hope remains a ramping up in US dysfunction
Gold futures are clearly being bought when there is a rise in uncertainty surrounding the DC situation. Traders are beginning to “expect” things to happen by certain times. When the expected news doesn’t arrive on-time, the markets are very actively expressing their disappointment by buying safet assets and selling risk assets..
Technical outlook for gold
Technicians say that gold futures are now “broken” after closing below 1276 the other day. Bounces like today’s are to be treated as opportunities to sell longs or get short they say. 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 10/11 peak at 1294.80 level.