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31 Dec 2013
Gold trading off of the Monday lows at 1193, but remains bearish; 1172 is bears’ target
FXstreet.com (Barcelona) - Gold failed to rally Monday even with the tailwind of a lower DXY – a very bearish sign say technicians.
Gold back into the bearish nightmare – falling whether DXY rises or falls
A bullish pattern for gold would be when it rallies when the DXY is rising as well as when it falls. What traders are getting now is gold falling when the DXY is falling as well as when it rises – the exact opposite of what the bulls want to see.
Technical outlook for gold
Technicians say that if the most bearish scenario plays out that the ultimate downside target for gold is 1,065. However, gold will obviously see support at last week’s low of 1186. If that level breaks, gold may very well see some buying interest at the 6/28 low of 1179.80 and the Fibonacci projection of 1172. Resistance comes in at the last week’s high of 1218.90 which is backed up by the recent pivot high at 1250.
Gold back into the bearish nightmare – falling whether DXY rises or falls
A bullish pattern for gold would be when it rallies when the DXY is rising as well as when it falls. What traders are getting now is gold falling when the DXY is falling as well as when it rises – the exact opposite of what the bulls want to see.
Technical outlook for gold
Technicians say that if the most bearish scenario plays out that the ultimate downside target for gold is 1,065. However, gold will obviously see support at last week’s low of 1186. If that level breaks, gold may very well see some buying interest at the 6/28 low of 1179.80 and the Fibonacci projection of 1172. Resistance comes in at the last week’s high of 1218.90 which is backed up by the recent pivot high at 1250.