Gold: Calm For Now With Bearish Storm Waiting
Mingze Wu | Nov 20, 2013 05:16AM ET
Hourly Chart
Gold prices remain steady despite strong dovish statements by various Fed members yesterday. Instead of rallying up strongly due to lower chance of QE Tapering, prices actually went lower below 1,275 during late US session, only managing to climb back above 1,275 during Asian session. However, we're back below 1,275 once more, supported meekly by the rising trendline that is in play.
This suggest that Gold traders are bearish, and the mute response to Fed talk suggest that speculators for a non-tapering event may have already over extended themselves, suggesting that the broader bearish fundamentals (e.g. no need for inflation protection, and lower physical demand for gold) is gaining initiative, and may start to drive prices lower whether regardless of December FOMC outcome.
Immediate bearish target would be 1,270, with the recent swing low of 1,261.5 being the next bearish objective. It is hard to imagine prices being able to hit much lower for now as Bearish momentum will definitely be Oversold should price hit 1,261.5 right now. On the other hand, should prices rebound from the trendline, 1,280 will be the bullish target, with high chances of bearish pullback especially if there isn't any news release that supports higher gold prices.
Weekly Chart
Weekly Chart remains bearish, but Stochastic suggest that we may not be able to push much lower from where we are right now with momentum already Oversold. However, this does not override the overall bearish outlook, and bearish objectives below 1,250 remain plausible but perhaps not in the immediate future.
Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.