18 Nov 2013
Gold failing to impress on upside despite the Yellen / Bernanke effect on the DXY
FXstreet.com (Barcelona) - Gold futures will need to show more upside energy that they have recently in order to create the feeding frenzy to the upside that the bulls crave. A slow crawl to the upside as the DXY is under pressure just doesn’t cut it.
Gold seems to need a more meaningful breakdown in the DXY in order to see more buyers
As gold typically trades inversely to the US Dollar Index (DXY), one would have thought that gold would have been ripping to the upside as the words were flowing out of Yellen and Bernanke’s mouths last week. While fold and silver did see a little upside initially, the action was anything but convincing. Perhaps traders were leery of buying into the metals until they see a convincing breakdown in the DXY – which as of yet has not happened. However, a close in the DXY below 80.77 will likely get gold traders’ attention.
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 October low of 1251 and the 6/28 low of 1179.80. Resistance comes in at the 11/7 high of 1326.8 and is backed up by the 10/28 high of 1361.80.
Gold seems to need a more meaningful breakdown in the DXY in order to see more buyers
As gold typically trades inversely to the US Dollar Index (DXY), one would have thought that gold would have been ripping to the upside as the words were flowing out of Yellen and Bernanke’s mouths last week. While fold and silver did see a little upside initially, the action was anything but convincing. Perhaps traders were leery of buying into the metals until they see a convincing breakdown in the DXY – which as of yet has not happened. However, a close in the DXY below 80.77 will likely get gold traders’ attention.
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 October low of 1251 and the 6/28 low of 1179.80. Resistance comes in at the 11/7 high of 1326.8 and is backed up by the 10/28 high of 1361.80.