Friday’s price action left the bulls far more enthused by the end of the day than in previous sessions last week, where it looked possible that 1700 might give way, which would have led to a sharp sell off back to 1670.
As it turned out, 1705 held firm and formed a double-bottom with the previous day’s low as price slowly ground its way back throughout the afternoon to close at 1713.
Overnight trading in Asia saw gold rise to 1723 by London opening on the back of a weakened dollar as a result of President Obama’s positive statements on Friday regarding the probable resolution of the “fiscal cliff” situation.
We have seen a steady climb throughout the day today back to the 1730 level, where gold faces some strong resistance at 1732-1738 – a breakthrough of this is likely to see prices climb back towards 1800, however a failure to breach this resistance area will mean another test of the 1700 support level is likely.
For our subscribers at www.goldtradingexperts.com, today's video looks at our strategy for navigating our open long position through these potentially choppy waters.
As it turned out, 1705 held firm and formed a double-bottom with the previous day’s low as price slowly ground its way back throughout the afternoon to close at 1713.
Overnight trading in Asia saw gold rise to 1723 by London opening on the back of a weakened dollar as a result of President Obama’s positive statements on Friday regarding the probable resolution of the “fiscal cliff” situation.
We have seen a steady climb throughout the day today back to the 1730 level, where gold faces some strong resistance at 1732-1738 – a breakthrough of this is likely to see prices climb back towards 1800, however a failure to breach this resistance area will mean another test of the 1700 support level is likely.
For our subscribers at www.goldtradingexperts.com, today's video looks at our strategy for navigating our open long position through these potentially choppy waters.