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Gold Bulls Still Hopeful

ByGoldTradingExperts.com
Published 08/07/2014, 04:21 AM
Updated 07/09/2023, 06:31 AM

Gold surged higher yesterday on geopolitical tensions, breaking through the upper boundary of the short term down trend channel convinicngly and challenging the 65 week MA again to keep the bulls hopes alive of a reversal in the intermediate term bear market.

Gold has potentially completed an "ABC-X-ABC" correction and started a new wave higher, though there is significant resistance above and a surging dollar may yet cap gold's advance. We must also keep an eye on equities, as we maintain our stance that we need a meaningful correction in stocks to see a strong rally in gold.

Gold has bounced off the 6$1.8% retracement level at $1280 and looks primed to rally towards $1325 in the first instance.

Support can be found at $1302-$1305, $1295-$1297, $1286, $1280, $1274, $1263, $1257-$1260, $1250-$1252, $1237-$1240, $1220-$1225, $1210, $1200 and $1180. A break of $1180 would have serious bearish implications for gold and suggest a decline to $1000-$1050 in the short term - a failure to break the 65 week MA has made this scenario much more likely.

Resistance can be found at $1310, $1318-$1322, $1325-$1326, $1333-$1335, $1340-$1342, $1352-$1354, $1392-$1395, $1400, $1420 and $1435. We appear to be witnessing a second failure to break through the key 65 week MA - this would suggest that the intermediate down trend is intact and a retest of $1240 and possibly $1180 is likely.

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