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20 Aug 2013
Gold easing back down after strong bullish run. Higher prices still ahead?
FXstreet.com (Barcelona) - Gold futures are trading off by just a few dollars at around 1,363 early Tuesday after the most recent powerful upside move temporarily ran out of gas.
Gold continues to benefit from the sluggish DXY
As traders and analysts have been noting recently, the US Dollar is showing some potentially bearish divergent behavior in the very short-term. This sluggish trading action in the greenback recently has been giving gold and silver a boost in the short-term. If (or when) the DXY turns back up - as we suspect it might - it will be interesting to see how the charts for gold and silver react.
Technical outlook for gold
Technicians say the next upside target for gold is the 1,394 – 1,443 range based on Fibonacci projections. The key resistance is the upper edge of that range, though. Support for the yellow metal comes in at the 1,349.10 level.
Gold continues to benefit from the sluggish DXY
As traders and analysts have been noting recently, the US Dollar is showing some potentially bearish divergent behavior in the very short-term. This sluggish trading action in the greenback recently has been giving gold and silver a boost in the short-term. If (or when) the DXY turns back up - as we suspect it might - it will be interesting to see how the charts for gold and silver react.
Technical outlook for gold
Technicians say the next upside target for gold is the 1,394 – 1,443 range based on Fibonacci projections. The key resistance is the upper edge of that range, though. Support for the yellow metal comes in at the 1,349.10 level.