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Gold Market Update: Gold Likely To Move To Top Of Uptrend

ByGoldTradingExperts.com
Published 05/07/2014, 05:28 AM
Updated 07/09/2023, 06:31 AM
GC
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Yesterday saw Gold drift lower in quiet trading, consolidating the gains of the previous two sessions. The trading range was narrow and entirely within the range of the previous day - an "inside day" that indicates consolidation.

This price action will have been concerning for the bulls - with the dollar and equities sharply lower and oil higher, gold should have found support and moved higher, building on the breakout from the down trend channel on Friday/Monday.

This morning, gold is firmer at $1313 and looking likely to move back to the top of the uptrend channel at $1319, with the 80 and 200 hour MAs providing support at $1306 and $1299 respectively. Equities and the dollar are flat, however oil is up again and is now trading back above $$100 a barrel.

Support can be found at $1304-$1307, $1298-$130$1, $1288-$1291, $1284, $1277-$1280, $1267, $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 $13$14-$1315, $1319-$1322, $1330-$1332, $1340-$1342, $1352-$1354, $1392-$1395, $1400, $1420 and $1435. The impulsive breakout above the first down trend line on the weekly chart suggests an end to the intermediate term down trend, however the 65 week MA must be broken before a significant rally can develop.

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