Gold Holds Its Ground In Potential Recovery
FX Solutions | Oct 28, 2013 01:09PM ET
Gold on the daily chart has maintained its ground during a potential recovery that has been in place for the past two weeks since its mid-October 1251 low. The precious metal has risen sharply in value during these two weeks, forming a steep bullish run that has brought the price off its multi-year low of 1180, which was hit in late June as well as off its noted three-month low established in mid-October.
In the process of the current advance, gold has broken out above its 50-day moving average but has not yet reached its 200-day, which is currently around the 1386 level. The price is also approaching the 61.8% Fibonacci retracement of the recent plunge from the August 1433 high down to the noted October 1251 low. Further momentum on the current recovery attempt has a clear upside target around the 1425 resistance level, with key support currently residing around the 1300 price region.
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