25 Jul 2013
Precious metals took it on the chin Wednesday as DXY bounced
FXstreet.com (Barcelona) - Gold is treading water early Thursday after correcting sharply off of Wednesday’s peak of 1,348.70. More DXY-moving data due out in the US Thursday.
The metals had completed five waves higher and were due for a pullback
Gold and silver pulled back sharply Wednesday in reaction to an oversold bounce in the DXY and to a short-term overbought condition of its own. Better economic news out of the US Wednesday pushed the yield on the 10-year Treasury Note higher and gave the DXY a much-needed boost. That change in direction led to another change of direction in the gold and silver markets with gold tumbling by over 1.5% to $1,320 and silver falling 1% to $20.
Technical outlook for the DXY
“While more upside is likely in the precious metals arena, a short-term pullback should play out first” said Tim Thielen, CMT and author of The Sea Change Report Thielen is calling for gold to move down to either 1,309 or 1,248 – depending heavily on what transpires short-term with US interest rates and the DXY. Short-term resistance for gold comes in at the Wednesday high of 1,348.70 and is followed by the early-June peak and Fibonacci retracement (of the October to June decline) level of 1,418.42. Short-term support for DXY comes in at the first two Fibonacci retracement (of the recent rally) support levels of 1,309 and 1,284.
The metals had completed five waves higher and were due for a pullback
Gold and silver pulled back sharply Wednesday in reaction to an oversold bounce in the DXY and to a short-term overbought condition of its own. Better economic news out of the US Wednesday pushed the yield on the 10-year Treasury Note higher and gave the DXY a much-needed boost. That change in direction led to another change of direction in the gold and silver markets with gold tumbling by over 1.5% to $1,320 and silver falling 1% to $20.
Technical outlook for the DXY
“While more upside is likely in the precious metals arena, a short-term pullback should play out first” said Tim Thielen, CMT and author of The Sea Change Report Thielen is calling for gold to move down to either 1,309 or 1,248 – depending heavily on what transpires short-term with US interest rates and the DXY. Short-term resistance for gold comes in at the Wednesday high of 1,348.70 and is followed by the early-June peak and Fibonacci retracement (of the October to June decline) level of 1,418.42. Short-term support for DXY comes in at the first two Fibonacci retracement (of the recent rally) support levels of 1,309 and 1,284.