23 Oct 2013
Gold blows through resistance levels on DXY weakness and commodity money fleeing oil
FXstreet.com (Barcelona) - Gold and silver were the beneficiaries of multiple tailwinds Tuesday – the main two being the falling DXY and falling crude oil.
Precious metals benefiting from weakness in key alternatives
Gold’s rally through resistance Tuesday brought out the talking heads in full force fighting to provide proper justification for the move. Almost everyone properly cited the NFP-induced fall in the greenback. However, another rationale for the magnitude of the drop was that money managers who had switched from gold to crude oil for their global-macro commodities allocations decided Tuesday to reverse that allocation as crude seems to be breaking down technically.
Technical outlook for gold
Technicians say gold likely has higher prices ahead but not before a retracement of the last week’s gains. Support for this pullback currently comes in at 1309, 1298 or 1287 (all three are Fibonacci levels). Resistance comes in at Tuesday’s high of 1344.70 and is followed by 1353.80.
Precious metals benefiting from weakness in key alternatives
Gold’s rally through resistance Tuesday brought out the talking heads in full force fighting to provide proper justification for the move. Almost everyone properly cited the NFP-induced fall in the greenback. However, another rationale for the magnitude of the drop was that money managers who had switched from gold to crude oil for their global-macro commodities allocations decided Tuesday to reverse that allocation as crude seems to be breaking down technically.
Technical outlook for gold
Technicians say gold likely has higher prices ahead but not before a retracement of the last week’s gains. Support for this pullback currently comes in at 1309, 1298 or 1287 (all three are Fibonacci levels). Resistance comes in at Tuesday’s high of 1344.70 and is followed by 1353.80.