October 28, 2013 – Gold (daily chart) has maintained its ground during a potential recovery that has been in place for the past two weeks since its mid-October 1251 low. The precious metal has risen sharply in value during these two weeks, forming a steep bullish run that has brought price off its multi-year low of 1180 that was hit in late June as well as off its noted three-month low established in mid-October. In the process of the current advance, gold has broken out above its 50-day moving average but has not yet reached its 200-day, which is currently around the 1386 level. Price is also approaching the 61.8% Fibonacci retracement of the recent plunge from the August 1433 high down to the noted October 1251 low. Further momentum on the current recovery attempt has a clear upside target around the 1425 resistance level, with key support currently residing around the 1300 price region.
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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