Back
2 Oct 2013
Gold grinding sideways under 1,322 resistance
FXstreet.com (Barcelona) - Gold has rallied nicely Wednesday – erasing more than half of the serious losses from Tuesday.
Gold being pulled in different directions by multiple forces
The sell-off yesterday in gold was rumored to have been a product of structural market issues rather than some derivative of the risk trade or the DXY trade. Somewhere speculating that a large commodities or global/macro fund was selling their gold holdings due to either redemption orders flowing in or due to the fund simply unwinding positions ahead of a shut-down.
Today’s rally may simply be a reversal of yesterday’s forces or it may be reflective of investors seeking a place to park money during uncertain times for the various major currencies. A final possibility may be that gold is rallying in direct correlation to the movements in the euro instead of being inversely related to the DXY’s movements.
Technical outlook for gold
Technicians say resistance for gold comes in at 1330, 1337 and 1342 – all horizontal lines. Short-term support for gold comes in at Wednesday’s low of 1276.90 and is followed by 1212 – 1214.
Gold being pulled in different directions by multiple forces
The sell-off yesterday in gold was rumored to have been a product of structural market issues rather than some derivative of the risk trade or the DXY trade. Somewhere speculating that a large commodities or global/macro fund was selling their gold holdings due to either redemption orders flowing in or due to the fund simply unwinding positions ahead of a shut-down.
Today’s rally may simply be a reversal of yesterday’s forces or it may be reflective of investors seeking a place to park money during uncertain times for the various major currencies. A final possibility may be that gold is rallying in direct correlation to the movements in the euro instead of being inversely related to the DXY’s movements.
Technical outlook for gold
Technicians say resistance for gold comes in at 1330, 1337 and 1342 – all horizontal lines. Short-term support for gold comes in at Wednesday’s low of 1276.90 and is followed by 1212 – 1214.