Spot Gold: Hit 1407
Carol Harmer | Aug 27, 2013 05:20AM ET
Gold broke the trendline evident at 1389 and travelled higher to 1407 overnight. We are still not sure about this rally due to the overbought conditions evident on the charts but as yet we are not seeing a reversal and there is scope that the market could trade to its 76.% fib which is located at 1414 before we see some serious selling pressure.
Only a break above this region would but the seller in trouble and they would be likely to jump back and stay on the sidelines and wait for a turn in the market. As this is such a large technical resistance there is every chance that it will hold on the first attempt. This would give sellers a good chance to take us lower back to the 1396/95 support. Now if we lose this support we are looking at another trip to the trendline at 1389 but this is likely to hold.
If we do break the 1415/17 barrier we see 1420/25 as a viable target.
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.