Yesterday’s close at 1336 saw gold breakout of the near-term down trend it has been in since 23rd July, however that failure of gold to break above the previous high at 1348 has established a side-ways channel with the upper boundary at 1348 and the lower at 1270 – we now expect gold to trade this range in the short term until more substantive news on the tapering of QE is released.
If gold breaks above 1350, we’d expect a rise quite quickly towards 1400 as stops are taken out, followed by strong resistance at 1415 and 1490 – similarly a break below 1270 should quickly see 1245 with support at 1225 and then 1200.
If gold breaks above 1350, we’d expect a rise quite quickly towards 1400 as stops are taken out, followed by strong resistance at 1415 and 1490 – similarly a break below 1270 should quickly see 1245 with support at 1225 and then 1200.