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12 Aug 2013
Gold gaps higher, but still range-bound with 1,343 as the ST ceiling
FXstreet.com (Barcelona) - While still in between support and resistance, gold has gapped up to start the week. Technicians are eyeing 1,343 as a potential stopping point for the rally.
Gold bulls have their work cut out for them
The precious metals complex is starting the new week off with 1% + gains late Sunday night. However, with the prospects of a Dollar that may rally and a euro that may trade lower very soon, is it wise for the gold bugs out there to go “all-in” right here and right now? The history of the inter-market relationship between gold and the US Dollar says, "no".
Technicians point to a trading range environment
The short-term trading range for gold should be 1,264 on the downside to 1,343 on the upside according to leading technical analysts. They are calling for a move up to 1,343 and then another shot down to 1,264. That is where we feel the move to 1,420 will commence, they say. Above 1,343, the next resistance level comes into play at 1,349.10 (the 7/23 intra-day high) and then again at 1,419.64 (the 100% Fibonacci projection line for what technicians are saying may be an “abc” upside correction).
Gold bulls have their work cut out for them
The precious metals complex is starting the new week off with 1% + gains late Sunday night. However, with the prospects of a Dollar that may rally and a euro that may trade lower very soon, is it wise for the gold bugs out there to go “all-in” right here and right now? The history of the inter-market relationship between gold and the US Dollar says, "no".
Technicians point to a trading range environment
The short-term trading range for gold should be 1,264 on the downside to 1,343 on the upside according to leading technical analysts. They are calling for a move up to 1,343 and then another shot down to 1,264. That is where we feel the move to 1,420 will commence, they say. Above 1,343, the next resistance level comes into play at 1,349.10 (the 7/23 intra-day high) and then again at 1,419.64 (the 100% Fibonacci projection line for what technicians are saying may be an “abc” upside correction).