11 Nov 2013
Gold slammed by the bullish action in the DXY and has more room to fall still
FXstreet.com (Barcelona) - Even when the DXY was sluggish mid-week last week, gold could not must much upside. Then, when the DXY took off Thursday and Friday, gold bulls threw in the towel and ran for cover.
Gold bulls aren’t getting any help at all from currencies
Gold futures tumbled hard last week as the greenback took off to the upside as a result of the very dovish comments out of the ECB on Thursday and very DXY-bullish US non-farm payrolls report that was released on Friday. Perhaps with Janet Yellen taking center stage this week with all of her reputed dovishness, gold might catch a tailwind from a temporary sell-off in the greenback. At this point technically for the DXY and gold, such a move would have to be considered “counter-trend” at best.
Technical outlook for gold
Technicians say that the ultimate downside target for gold is 1,065. 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 aren’t getting any help at all from currencies
Gold futures tumbled hard last week as the greenback took off to the upside as a result of the very dovish comments out of the ECB on Thursday and very DXY-bullish US non-farm payrolls report that was released on Friday. Perhaps with Janet Yellen taking center stage this week with all of her reputed dovishness, gold might catch a tailwind from a temporary sell-off in the greenback. At this point technically for the DXY and gold, such a move would have to be considered “counter-trend” at best.
Technical outlook for gold
Technicians say that the ultimate downside target for gold is 1,065. 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.