- Spot gold has been accumulating bids and offers within the wedge formation that it has taken up since that surge from down in the $1,180’soz. currently, gold is at 1127 during the time of writing, with a narrow range of between $1,126/129oz.
Gold was stabilising on the 21-4hr SMA on Friday and remains in bullish territory there still with the DXY losing its footing by 0.3%, ending last week at 95.68 after a good looking 0.6% run for the month of October so far.
It’s ‘oh so quiet’ – BUT… the week WILL pick up- Rabobank
The greenback is still up 4% year to date and remains troublesome to the gold bulls considering the Fed’s path of tightening underscored in the latest FOMC minutes. However, there are plenty of risks out there which are encouraging investors to pull capital from global equities and look for the haven status that gold offers and appeals to the investor. The question is whether the long dollar position is now growing tired – DXY can’t get a foothold into the 96 handle.
Gold levels
Gold keeps above water while the 21-D SMA is moving sideways below it. The precious metal is consolidating within the wedge on the daily charts and there is not very much of a bias one way or the other. A break below S1 would be significant, taking out the ascending support line and opening a run all the way back to $1,205 below S3 $1,210. On the flipside, R2 and $1,233 is key ahead of $1,239 1st and 2nd July double bottom lows. On a break there, the next Fibo extension is located at $1,278, (161.8% extension). $1,320 and the $1,236 are vital objectives through the rising trendline support through $1,281, 28. May low.
Share
