Gold’s march up the hill through August has taken a breather as it makes base camp around the $1360/75 range. The move topped out at the 50 fib of the Apr/Jun $1589.9/$1179.4 swing at $1384.7.
Gold daily chart 21 August 2013
The price has also been following the broken June support line and it’s done a fair job in providing resistance. It’s a short term line so is unlikely to stand up to any substantial move. The break in proceedings is naturally on the Fed’s next move so the fib level is likely to provide a decent resistance point.
The shiny stuff is also struggling to get a foothold above the 100 dma and after a look above earlier today we’re back below. Eamonn cast his Terminators eye over gold last night and highlighted some some levels to note.
I’m getting the impression that any analysis done around now for things like gold or oil is next to pointless as the market is waiting for the frigging taper. Given that we are likely get an extremely large move one way or another the tech isn’t going to stand up to much when it does. The risk to gold is that taper disappoints and we could see it pushing for $1600 once more in quick time. Conversely a big taper could see us challenging the lows at $1179.
If you’re in gold then you would be wise to plan for both sides of the taper bet.
He’s analysing
