11 Dec 2013
Gold was bid up Tuesday as the DXY got hit again; 1268.30 is next resistance level to watch
FXstreet.com (Barcelona) - Gold was on the rise Tuesday as the greenback got slammed again (inexplicably) and forex pairs like the EUR/USD and GBP/USD broke out above important technical resistance levels.
Gold still appears to be in a corrective move higher – not a new bull trend
Gold finally showed something better than merely a dead cat bounce Tuesday as the US Dollar continued to get drubbed by other strong currencies like the euro and the British Pound. The chart of the DXY looks very bearish according to technicians, but the chart of the 10-year Treasury Note Yield shows some potential support coming in at just below current yield levels – so perhaps the DXY will find some support as well – sending the precious metals lower (in theory). If the DXY continues to tumble, though, it could / should provide a continued tailwind for gold and silver futures.
Technical outlook for gold
Technicians still say that if the bearish scenario plays out that the ultimate downside target for gold is 1,065. However, gold would likely see some buying interest at the 6/28 low of 1179.80 and the Fibonacci projection of 1172. Resistance comes in at the Fibonacci projection for a possible “abc” upside correction at 1268.30. Above that, the 11/14 high of 1293.90 comes into play.
Gold still appears to be in a corrective move higher – not a new bull trend
Gold finally showed something better than merely a dead cat bounce Tuesday as the US Dollar continued to get drubbed by other strong currencies like the euro and the British Pound. The chart of the DXY looks very bearish according to technicians, but the chart of the 10-year Treasury Note Yield shows some potential support coming in at just below current yield levels – so perhaps the DXY will find some support as well – sending the precious metals lower (in theory). If the DXY continues to tumble, though, it could / should provide a continued tailwind for gold and silver futures.
Technical outlook for gold
Technicians still say that if the bearish scenario plays out that the ultimate downside target for gold is 1,065. However, gold would likely see some buying interest at the 6/28 low of 1179.80 and the Fibonacci projection of 1172. Resistance comes in at the Fibonacci projection for a possible “abc” upside correction at 1268.30. Above that, the 11/14 high of 1293.90 comes into play.