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Gold Market Update: Gold Made Spirited Start To 2014

ByGoldTradingExperts.com
Published 01/06/2014, 04:15 AM
Updated 07/09/2023, 06:31 AM
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After closing 2013 with a massive 28% annual loss, gold has made a spirited start to 2014, rising off key support at $1180 to currently trade near the 50 DMA at $1250.

However, we do not expect this strong performance to last, as the headwinds that affected gold so adversely last year remain - strong equities, rising interest rates, an improving global economy led by the US, tapering of quantitative easing and little or no inflation.

It is our expectation that after this rally fizzles out, gold will fall back and retest $1180, this time breaching the key support level and tumbling all the way down to $1000-$1050 before finding strong support.

Equities remain at all time highs, the dollar is testing the key 8$1 level and oil remains subdued - gold wil struggle to move much higher in this environment.

Support can be found at $1237-$1240, $1220-$1225, $1214, $1210, $1200, $1190, $1188 and $1180. A break of $1180 would have serious bearish implications for gold and suggest a decline to $1000-$1050 in the short term.

Resistance can be found at $1246, $1250-$1255, $1268-$1270, $1277-$1280 and $1291-$1295. A break above $1268 would suggest an end to the short term down trend, though it would take a break of $1300 to suggest a more significant rally was developing.

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