Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View More
Gold Prices in Freefall as U.S. Dollar Rally Stretches

Gold Prices in Freefall as U.S. Dollar Rally Stretches

Michael Boutros, Strategist

Talking Points

  • Goldbreaks through key near-term support- Focus remains lower
  • Updated targets & invalidation levels
  • Click Here to be added to Michael’s email distribution list.

Gold Weekly

Gold Weekly Chart

Technical Outlook: Gold prices broke through a key support zone noted last week at 1203 and a weekly close below this level would keep the focus lower in gold targeting 1171 and a more significant support confluence at 1120/30- this level is defined by the 1.618% extension of the decline off the high, the 76.4% retracement of the December rally & the 2014 low and converges on the lower median0line parallel (red) over the next few days. Initial resistance stands at former support with our medium-term bearish invalidation level now set to 1241 where the October low converges on the 52-week moving average. Note that weekly RSI has also broken below the 40-threshold for the first time sine

Gold Daily

Gold Daily Chart

Notes: A closer look at the daily chart highlights the significance of today’s break and we’ll need to see a close below support to keep the immediate short-bias in play. Note that today’s low was just cents off the October 2015 high-day close and may offer a brief reprieve for the battered metal. That said, I’d be looking to fade strength while below 1203 with a break lower targeting 1171, a minor target at 1142 & key support at 1120/30.

Relevant Data Releases

Looking for trade ideas? Review DailyFX’s 2016 4Q Projections

Other Setups in Play:

---Written by Michael Boutros, Currency Strategist with DailyFX

Join Michael for Live Weekly Trading Webinars on Mondays on DailyFX at 13:30 GMT (8:30ET)

FollowMichael on Twitter @MBForex or contact him at mboutros@dailyfx.com

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES