Wednesday, October 26, 2011

Gold hits resistance at $1720; holding gains

Gold has run exactly to the projected resistance level on the charts, backed off a bit, and then encountered additional buying which is keeping it well supported at the current hour.

It might be a bit early but it seems as if we might be seeing the gold market anticipating some sort of QE3 coming from the Fed sooner rather than later. The fact that it is acting as a safe haven and is shrugging off any weakness in equities and strength in the US Dollar is very telling. We'll see if this new pattern continues to hold in gold.

If gold plows through the resistance level noted on the chart near $1720, it looks to have a fairly clear path to $1750 or so. Volume on the move higher remains pretty decent.

Downside support likes first near $1680 followed by better support at $1650.

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3 comments:

  1. AnonymousOctober 26, 2011 at 4:36 PM

    do you have any long term price target for gold dan? Just curious what you think that price would be. These people calling for 5 digit gold just seems crazy to me. Any thoughts?

    ReplyDelete
  2. CurtisOctober 26, 2011 at 4:46 PM

    Gold turned around right at-pretty much to the pip- the 50% short side retracement from 1923 highs to 1535 lows. Next stop could be $1443... but you wont catch me shorting gold, I'm not that brave/dumb

    ReplyDelete
  3. CurtisOctober 26, 2011 at 4:53 PM

    Break of $1776 throws all that out the window

    ReplyDelete

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