6 Dec 2013
Gold opens lower, but still above Thursday’s lows; 1172 technical target looms
FXstreet.com (Barcelona) - Gold could not advance when rates and the greenback were in decline. Was anyone really expecting anything but misery for gold longs once rates and the Dollar started to rise again?
Gold showing little more than “corrective” tendencies on up days
Not that it should be a surprise to anyone given how sluggish the precious metals were even when they had the tailwinds of lower US rates and a lower DXY behind them recently, but gold has come under renewed downside pressure over the last week or so after rates and the DXY began to climb again. Even Thursday’s upside action looked like little more than a corrective bounce that will, if recent trends hold up, lead to more downside. Friday promises to give traders in all asset classes something to consider, though, as the US non-farm payrolls number is due out at 13:30 GMT.
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 6/28 low of 1179.80 and the Fibonacci projection of 1172. Resistance comes in at Wednesday’s high of 1251.50 and is followed up by the 11/12 low of 1260.50.
Gold showing little more than “corrective” tendencies on up days
Not that it should be a surprise to anyone given how sluggish the precious metals were even when they had the tailwinds of lower US rates and a lower DXY behind them recently, but gold has come under renewed downside pressure over the last week or so after rates and the DXY began to climb again. Even Thursday’s upside action looked like little more than a corrective bounce that will, if recent trends hold up, lead to more downside. Friday promises to give traders in all asset classes something to consider, though, as the US non-farm payrolls number is due out at 13:30 GMT.
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 6/28 low of 1179.80 and the Fibonacci projection of 1172. Resistance comes in at Wednesday’s high of 1251.50 and is followed up by the 11/12 low of 1260.50.