Spot Gold:
Carol Harmer | Sep 02, 2013 06:26AM ET
Gold followed on from Friday's low close, breaking trendline at 1392 and more importantly the 50% Med Term Fib at 1398. Now this 1398 has been the overnight high and really to get some more momentum going for the buyers we must see a break and close above.
However, the technical indicators are bearish and failure to break 1398 puts Gold under further pressure and we should see the overnight lows of 1373 re-visited. We do have support here, which is why we have held this point but the market does look weaker below 1398 and it looks likely to come lower to the 30% med term fib located at 1346. Now we do not expect this to happen overnight, although Gold does have a way of switching when you least expect it, but be aware that if we lose 1372 the market will take this as a weak signal and sellers will be jubilantly swatting the buyers aside like flies. 1364/60 may well hold initially, but this 1346 area looks too good to be missed so keep this in the back of your minds.
If above 1398 small rallies would be expected but given that the market is in the throes of trading lower, utilising any rallies to reinstate shorts for this expected move lower.
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.