7 Nov 2013
Gold remains in a short-term trading range – waiting on further guidance from the DXY
FXstreet.com (Barcelona) - Gold was not able to muster any upside momentum despite the bit of weakness in the US Dollar that sprouted up early to mid-session Wednesday.
Gold bulls still hoping for – and not yet getting – weak US data to depress the DXY
Gold futures have seen very little movement despite some short-term moves in the DXY that theoretically should have boosted the yellow metal. It appears that even traders that buy and sell gold as an inverse proxy on the DXY’s movements are wising up to the fact that it will take a break of either the upper or lower boundary of the recent little trading range – 80.37 and 80.93 – to spur any meaningful moves in gold. Gold’s corresponding trading range is 1305.20 to 1327.30.
Technical outlook for gold
Technicians say that the ultimate downside target for gold is 1,065. Short-term support is 1305.20 as noted above. But on the way down to the 1065 ultimate target, gold may see some buying interest at the October low of 1251 and the 6/28 low of 1179.80. Resistance comes in at the 11/1 high of 1327.30 and is backed up by the 10/28 high of 1361.80.
Gold bulls still hoping for – and not yet getting – weak US data to depress the DXY
Gold futures have seen very little movement despite some short-term moves in the DXY that theoretically should have boosted the yellow metal. It appears that even traders that buy and sell gold as an inverse proxy on the DXY’s movements are wising up to the fact that it will take a break of either the upper or lower boundary of the recent little trading range – 80.37 and 80.93 – to spur any meaningful moves in gold. Gold’s corresponding trading range is 1305.20 to 1327.30.
Technical outlook for gold
Technicians say that the ultimate downside target for gold is 1,065. Short-term support is 1305.20 as noted above. But on the way down to the 1065 ultimate target, gold may see some buying interest at the October low of 1251 and the 6/28 low of 1179.80. Resistance comes in at the 11/1 high of 1327.30 and is backed up by the 10/28 high of 1361.80.