13 Dec 2013
Gold hammered Thursday – finishing near session lows. 1210.10 going to be tested?
FXstreet.com (Barcelona) - Gold traders quickly abandoned any bullish leanings they might have had Thursday once a rise in the greenback became more than a fleeting wish. The yellow metal finished just off the lows and now appears set for a test of 1210.10 – the early December lows.
Gold continues to show more energy on the downside
Tuesday’s gains aside, any rally days in gold recently have been very timid in nature and have left technicians raising a skeptic’s eye toward the yellow metal. Thursday’s downside action saw an expansion in open interest on the futures contracts for gold – contrary to the decrease in open interest that occurred during several of the recent up days.
With the US Dollar seeing some renewed buying interest Thursday, the negative action in gold was inevitable. The question now becomes whether the DXY will continue to rally as tapering chatter apparently is heating up again.
Technical outlook for gold
Technicians 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 12/6 low at 1210.10, 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 continues to show more energy on the downside
Tuesday’s gains aside, any rally days in gold recently have been very timid in nature and have left technicians raising a skeptic’s eye toward the yellow metal. Thursday’s downside action saw an expansion in open interest on the futures contracts for gold – contrary to the decrease in open interest that occurred during several of the recent up days.
With the US Dollar seeing some renewed buying interest Thursday, the negative action in gold was inevitable. The question now becomes whether the DXY will continue to rally as tapering chatter apparently is heating up again.
Technical outlook for gold
Technicians 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 12/6 low at 1210.10, 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.