Gold: Consolidation N-Term Before Higher; $1793 Solid Support & $1910 First Resistance – ING

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What is the outlook for gold in the near-term and long-term?

Here is their view, courtesy of eFXdata:

ING discusses Gold technical outlook and adopts a neutral bias in the near-term, and bullish bias in the medium to long term.

“The short-term consolidation within the long-term uptrend continues, with prices successfully moving above the horizontal support around USD/oz.1,858. A break below this horizontal support would not immediately be bearish, as the slowly rising EMA-200 line will offer next solid support at USD/oz.1,793. This exactly corresponds to the horizontal support level in the weekly chart,” ING notes.

First resistance comes in at the MA-50 line at USD/oz.1,910 and a close above the falling trend line around USD/oz.1,955 is necessary to confirm that prices have bottomed above the horizontal support around USD/oz.1,858.  A break above the falling trend line around USD/oz.1,955 suggests a resumption of the uptrend, confirmed by a break above the horizontal resistance area USD/oz.1,975-2,010,” ING adds.

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Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer.