6 Jan 2014
Gold extends rally above $1,240
FXstreet.com (Córdoba) - Gold started the week holding upside momentum and rose to $1,244.40 hitting the strongest level since December 18th. In the initial hours of the week dropped to $1,232.80 but it bounced to the upside as stocks in Asia tumble and following data from China, that showed a decline in the HSBC China PMI service sector index from 52.5 to 50.9.
Strong start of 2014 for Gold
From last week lows it has risen more than $60, posting on Friday the third daily gain in a row. The rally started in the last trading day of 2013, when it reversed sharply after dropping to year lows at the $1,180.00 area. The precious metal started 2014 trading barely above $1,200.00 and rose more than $40 in three trading days.
Levels to watch for Gold
To the upside, above $1,245.00 immediate resistance could be located at $1,250.00 and $1,263.00 while to the downside support levels might lie at $1,226.00 and $1,219.00. A key support level to watch continues to be around $1,180.00 where 2013 lows lie. The mentioned area was tested twice in the last month but managed to hold.
Strong start of 2014 for Gold
From last week lows it has risen more than $60, posting on Friday the third daily gain in a row. The rally started in the last trading day of 2013, when it reversed sharply after dropping to year lows at the $1,180.00 area. The precious metal started 2014 trading barely above $1,200.00 and rose more than $40 in three trading days.
Levels to watch for Gold
To the upside, above $1,245.00 immediate resistance could be located at $1,250.00 and $1,263.00 while to the downside support levels might lie at $1,226.00 and $1,219.00. A key support level to watch continues to be around $1,180.00 where 2013 lows lie. The mentioned area was tested twice in the last month but managed to hold.