16 Dec 2013
Gold opens modestly higher Monday after bounce on Friday. Is 1210.10 going to be tested?
FXstreet.com (Barcelona) - Gold traders will have plenty to absorb on Monday with risk-determinant Chinese PMI set to be released early, European PMIs later and a flurry of US data due out to finish up the day – and don’t forget about the politicians in DC.
Gold bounced modestly Friday after Thursday’s sharp sell-off; more energy on down days
Today’s action has been quiet thus far, but the general observation by many market watchers is that the intensity of trading during down days in gold easily trumps the intensity of up days. The main driver of gold’s directional moves recently has been the fate of the US Dollar – which in turn is being pushed around short-term by the perception of what is developing in Washington, DC.
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 bounced modestly Friday after Thursday’s sharp sell-off; more energy on down days
Today’s action has been quiet thus far, but the general observation by many market watchers is that the intensity of trading during down days in gold easily trumps the intensity of up days. The main driver of gold’s directional moves recently has been the fate of the US Dollar – which in turn is being pushed around short-term by the perception of what is developing in Washington, DC.
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.