30 Aug 2013
Gold continues its short-term correction that began Wednesday
FXstreet.com (Barcelona) - As the DXY has begun its most recent upside move, gold accordingly began to move lower. Barring some very poor data out of the US Friday or more disconcerting news from the Syrian-US front, gold should continue to pull back.
Gold and silver are being treated as safety assets – which can be good or bad
Gold and silver have been rallying coincident with angst levels recently. As risk assets have caught a bid over the last 48 hours, gold and silver have begun to correct modestly (gold dropping from 1,434 to as low as 1,402 before bouncing a bit). The action in the DXY has contributed to the metals’ movements along with the news flow surrounding the Syrian situation. The historical inverse relationship between gold and the DXY has been in effect over the last 48 hours after months of it not holding up.
Technical outlook for gold
Now that the short-term target at 1,431 was tested, technicians are calling for a modest pullback in gold to the 1,365 – 1,370 range (gold was trading at around 1,410 recently). Technicians also add that gold should make it up to the 1,438 – 1,440 Fibonacci-generated target range before the longer-term macro corrective rally phase is over.
Gold and silver are being treated as safety assets – which can be good or bad
Gold and silver have been rallying coincident with angst levels recently. As risk assets have caught a bid over the last 48 hours, gold and silver have begun to correct modestly (gold dropping from 1,434 to as low as 1,402 before bouncing a bit). The action in the DXY has contributed to the metals’ movements along with the news flow surrounding the Syrian situation. The historical inverse relationship between gold and the DXY has been in effect over the last 48 hours after months of it not holding up.
Technical outlook for gold
Now that the short-term target at 1,431 was tested, technicians are calling for a modest pullback in gold to the 1,365 – 1,370 range (gold was trading at around 1,410 recently). Technicians also add that gold should make it up to the 1,438 – 1,440 Fibonacci-generated target range before the longer-term macro corrective rally phase is over.