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28 Aug 2013
Gold overbought and nearing key resistance at 1,439
FXstreet.com (Barcelona) - Gold rallied again Tuesday as the greenback drifted lower on global nervousness about the US’s potential involvement in Syria’s civil war.
Gold is clearly part of the current safety trade
Gold bulls who have had and built upon their optimism for the yellow metal since the late-June low below 1,200 are benefitting from the added feature gold has of being a safe haven asset over the last several sessions. Gold has advanced from 1,349.10 (the previous break-out point) to 1,415 in just the last seven trading sessions – and there still may be a bit more upside to come.
Technical outlook for gold
Technicians say that gold should make it up to the 1,438 – 1,440 Fibonacci-generated target range before this rally phase is over. Short-term support for gold comes in at the horizontal line support created by the previous breakout point of 1,349.10 on the low side and by the 8/20 low of 1,351.60 on the up side.
Gold is clearly part of the current safety trade
Gold bulls who have had and built upon their optimism for the yellow metal since the late-June low below 1,200 are benefitting from the added feature gold has of being a safe haven asset over the last several sessions. Gold has advanced from 1,349.10 (the previous break-out point) to 1,415 in just the last seven trading sessions – and there still may be a bit more upside to come.
Technical outlook for gold
Technicians say that gold should make it up to the 1,438 – 1,440 Fibonacci-generated target range before this rally phase is over. Short-term support for gold comes in at the horizontal line support created by the previous breakout point of 1,349.10 on the low side and by the 8/20 low of 1,351.60 on the up side.