After strong gains on Friday gold retraced slightly yesterday, finding support at the 80 hour MA at $1295 before moving higher again. This morning, gold is sharply higher and has broken above Friday's high at $1307 to currently trade at $1312.
The break above $1307 is a very positive signal and suggests the next rally leg in gold is underway, with a series of higher lows and higher highs forming on the 4 hour chart.
Gold has broken back above the 50 DMA, another positive development, and is closing in on the 20 DMA at $1321. This price action, with gold also trading above the 200 DMA, suggests the bullish trend remains alive - we would expect the major moving averages to provide resistance if the intermediate bear trend was re-establishing itself.
Equities are well off all time highs, coinciding with gold's move higher, whilst the dollar has fallen back to critical support at 80 - a break below this level will accelerate the rally in gold.
Support can be found at $1307, $1298-$1300, $1277-$1280, $1250-$1255, $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, though this now looks unlikely unless we break below $1250.
Resistance can be found at $1314 $1320-$1322, $1330-$1332, $1340-$1342, $1352-$1354, $1392-$1395, $1400, $1420 and $1435. The impulsive breakout above the down trend line on the weekly chart suggests an end to the intermediate term down trend and that a significant rally is now developing.
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Gold Market Update: Gold Is Sharply Higher
Published 04/08/2014, 08:11 AM
Updated 07/09/2023, 06:31 AM
Gold Market Update: Gold Is Sharply Higher
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Latest comments
gold will move DOWN right along with stocks...
gold will move DOWN right along with stocks...
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