Gold Backs off Major Resistance within Recovery

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2013-08-29-Gold

August 29, 2013 – Gold (daily chart) has backed off of major resistance around the 1425 area after advancing to breach that level slightly yesterday. This pullback from resistance occurs after a sharp bullish run of the past week has extended the recent two-month recovery from gold’s late-June depths around 1180. Despite the current slight retreat from 1425-area resistance, bullish momentum on the two-month uptrend still remains substantial. With tentative support within this steep uptrend now residing around the 1385 price region, a re-break above 1425 could then target further upside resistance objectives around 1475 and then 1530, a major historical support/resistance level.

James Chen, CMT
Chief Technical Strategist
City Index Group

Forex trading involves a substantial risk of loss and is not suitable for all investors. This information is being provided only for general market commentary and does not constitute investment trading advice. These materials are not intended as an offer or solicitation with respect to the purchase or sale of any financial instrument and should not be used as the basis for any investment decision.

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About Author

James Chen is Chief Technical Strategist for City Index Group. He is also a Chartered Market Technician. He is the author of the books: "Essentials of Foreign Exchange Trading" (John Wiley & Sons, 2009) and "Essentials of Technical Analysis for Financial Markets" (John Wiley & Sons, 2010). Mr. Chen writes currency analysis, leads forex trading seminars and has appeared in numerous major financial media outlets, including CNBC, Bloomberg TV, Forbes, Reuters, Dow Jones, and the Associated Press.

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