12 Dec 2013
Gold sees a little downside Wednesday; 1268.30 remains resistance
FXstreet.com (Barcelona) - Gold took a break from its recent bounce Wednesday and pulled back very mildly as a result of some initial buying in the greenback.
Gold at the will of US rates and the greenback
If the buying in the US Dollar continues, gold’s selling will likely pick up – with the reverse being true, of course. The chart of the US Dollar does not look great, even as the chart of rates is a tad more bullish according to leading technicians. So, gold traders will be carefully monitoring whether chatter around Fed tapering has legs or not. If the US data continues to stream in on the bullish side of the ledger, the chatter will pick up. The one caveat to that is that if the very conservative wing of the Republican political party in the US muddies the thus far collaborative, cooperative budget discussions, the Fed will likely wait one more month to taper.
Technical outlook for gold
Technicians say that if the bearish scenario plays out that the ultimate downside target for gold is 1,065. However, gold would likely see some buying interest at the 12/6 low at 1210.10, the 6/28 low of 1179.80 and the Fibonacci projection of 1172. Resistance comes in at the Fibonacci projection for a possible “abc” upside correction at 1268.30. Above that, the 11/14 high of 1293.90 comes into play.
Gold at the will of US rates and the greenback
If the buying in the US Dollar continues, gold’s selling will likely pick up – with the reverse being true, of course. The chart of the US Dollar does not look great, even as the chart of rates is a tad more bullish according to leading technicians. So, gold traders will be carefully monitoring whether chatter around Fed tapering has legs or not. If the US data continues to stream in on the bullish side of the ledger, the chatter will pick up. The one caveat to that is that if the very conservative wing of the Republican political party in the US muddies the thus far collaborative, cooperative budget discussions, the Fed will likely wait one more month to taper.
Technical outlook for gold
Technicians say that if the bearish scenario plays out that the ultimate downside target for gold is 1,065. However, gold would likely see some buying interest at the 12/6 low at 1210.10, the 6/28 low of 1179.80 and the Fibonacci projection of 1172. Resistance comes in at the Fibonacci projection for a possible “abc” upside correction at 1268.30. Above that, the 11/14 high of 1293.90 comes into play.