WorldWideMarkets Community

Forex Trading, Market News & Technical Analysis

Gold, Near Term Strength?

Posted by Joseph Trevisani on Sep 3, 2013 3:10:00 PM

describe the image

Gold has forged back above $1400 after closing beneath that level on Friday and Monday. If the metal closes  at or above  Friday's high of $1411.7 it  could provide sufficient impetus for a test of the June high at $1423.67 and the August top at $1433.73.

The May 2nd peak at $1488.83 would be the ultimate goal, though even that would not be sufficient to embrace a new long term trend higher.  That level, coming after the exceptionally steep two-day April collapse was as much a reaction to the volatility and the capitulation of the ten month fall from $1800, as it was a occasion of new-found gold conviction.

Gold's technical analysis looks supportive. The August 28th top confirmed the rising channel that has operated since June 28th. Today's low at $1384.60 confirmed the sharper trend line within the channel.  In addition, Friday's CFTC open interest data, for positions up to August 27th shows a net long increase of 2.6 million ounces to 13.6 million.

Joseph Trevisani

Chief Market Strategist

WorldWideMarkets

Chart: Bloomberg

ScreenHunter 1713 Sep. 03 16.19

 


 

Tools & Educational Resources

Forex 101LEARN MORE >>
Learn the basics of Forex and how to practice trading the markets.

GlossaryLEARN MORE >>
Confused by the language? Click here and search for key trading terms.

FAQ CenterLEARN MORE >>
Browse our frequently asked questions and find your answers right away.

VideosLEARN MORE >>
Access to the educational lessons, webinars and platform walkthroughs.

READY TO TRY THE MARKETS?

Get started with a FREE $10,000 Demo Account and experience the Forex Market RISK FREE!