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4 Nov 2013
Gold enters the new week in no-man’s land after being hit by the rising DXY
FXstreet.com (Barcelona) - Gold is temporarily holding its ground after the recent bout of strength in the US Dollar sent a percentage of longs running for the exits.
Gold bugs praying for shutdown-induced weak economic data to keep a lid on the DXY
Coming into last week, there was a fairly bullish feel to gold and silver based on the possibility of continued DXY weakness. However, after last week’s trading, weakness in the greenback might be a thing of the past – in which case the bearish case for gold is back on the table in a big way.
Gold started rolling over starting mid-week last week – immediately following the interest rate decision and accompanying commentary out of the FOMC on Wednesday. IF this is a renewed primary thrust to the downside, the target range for gold for this move will be 1138 – 1172 with an eventual target of 1065.
Technical outlook for gold
If this breakdown scenario is to play out for gold, technicians say confirmations of such will be sought by the bears in the form of breaks of support at the October low of 1251 and the 6/28 low of 1179.80. Resistance comes in at the 10/28 high of 1361.80.
Gold bugs praying for shutdown-induced weak economic data to keep a lid on the DXY
Coming into last week, there was a fairly bullish feel to gold and silver based on the possibility of continued DXY weakness. However, after last week’s trading, weakness in the greenback might be a thing of the past – in which case the bearish case for gold is back on the table in a big way.
Gold started rolling over starting mid-week last week – immediately following the interest rate decision and accompanying commentary out of the FOMC on Wednesday. IF this is a renewed primary thrust to the downside, the target range for gold for this move will be 1138 – 1172 with an eventual target of 1065.
Technical outlook for gold
If this breakdown scenario is to play out for gold, technicians say confirmations of such will be sought by the bears in the form of breaks of support at the October low of 1251 and the 6/28 low of 1179.80. Resistance comes in at the 10/28 high of 1361.80.