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10 Sep 2013
Gold in a holding pattern waiting on direction from DXY and US/Syria
FXstreet.com (Barcelona) - Gold remains bearishly below 1,416.40 but bullishly above 1,351.60 after it got a temporary reprieve Friday in the form of the week US jobs report. DXY direction and/or US/Syria chatter will be key for gold.
Slow data day in US means other markets and Syria news will drive gold Tuesday
Gold came into Tuesday treading water after a very slow data and news day in the US. The yellow metal barely budged in price while stocks rallied and interest rates and the DXY corrected lower. The key reason why gold failed to react to the DXY weakness was the fact that many are viewing this down spell as corrective action leading up to another shot higher.
Technical outlook for gold
Technicians say that at this point gold below 1,421 is very bearish – to the point that downside targets are all the way down below 1,100. Shorter-term support comes in at 1,351.60, 1,328.50 and 1,314.27. A close above 1,416.40 would have the technicians reconsidering their bearishness.
Slow data day in US means other markets and Syria news will drive gold Tuesday
Gold came into Tuesday treading water after a very slow data and news day in the US. The yellow metal barely budged in price while stocks rallied and interest rates and the DXY corrected lower. The key reason why gold failed to react to the DXY weakness was the fact that many are viewing this down spell as corrective action leading up to another shot higher.
Technical outlook for gold
Technicians say that at this point gold below 1,421 is very bearish – to the point that downside targets are all the way down below 1,100. Shorter-term support comes in at 1,351.60, 1,328.50 and 1,314.27. A close above 1,416.40 would have the technicians reconsidering their bearishness.