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1 Nov 2013
Gold hugging the flat line after several days of DXY-induced losses. What next?
FXstreet.com (Barcelona) - Gold is temporarily holding its ground after the recent bout of strength in the US Dollar sent a percentage of Pavlovian longs (those long of gold as a leveraged play on a falling DXY) running for the exits.
Gold bugs caught off guard this week by renewed tapering talk in the US
Gold futures are treading water for a day as traders await further directional guidance from US and European data Friday along with a pot pourri of Fed Heads giving speeches throughout the US session. Any hint a December / January tapering may induce further upside in the DXY and weakness in gold. On the other hand, any hint at dovishness by the Fed Heads would prevent further damage from occurring on gold’s chart – at least temporarily.
Technical outlook for gold
Technicians say that gold futures have support at the 10/22 low at 1309.50 and the 10/11 close at 1268.20. Resistance for the yellow metal comes in at the recent high of 1361.80 and is backed up by the 9/19 high of 1375.40.
Gold bugs caught off guard this week by renewed tapering talk in the US
Gold futures are treading water for a day as traders await further directional guidance from US and European data Friday along with a pot pourri of Fed Heads giving speeches throughout the US session. Any hint a December / January tapering may induce further upside in the DXY and weakness in gold. On the other hand, any hint at dovishness by the Fed Heads would prevent further damage from occurring on gold’s chart – at least temporarily.
Technical outlook for gold
Technicians say that gold futures have support at the 10/22 low at 1309.50 and the 10/11 close at 1268.20. Resistance for the yellow metal comes in at the recent high of 1361.80 and is backed up by the 9/19 high of 1375.40.