| GOLD (Spot) intraday: rebound. |
Pivot: 1757.00
Our Preference: LONG positions above 1757 with 1779.5 & 1787 in sight. Alternative scenario: The downside penetration of 1757 will call for 1753 & 1746. Comment: the RSI is bullish and calls for further advance. |
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The golden struggle. Gold is still waiting for its breakaway move and from the look of the charts, that’s appears some way off. Last week saw a failed attempt to push above the $1,800 level, the same as was seen back in late Feb/early March, with the move back in November of last year seeing gold quickly sold on the breach above. Why the reluctance? Well, partly because of the failed attempts in the past, investors are perhaps concerned whether there is enough underlying momentum to push gold to new highs on a sustained basis. The dollar itself is now some 0.7% higher vs. the levels trading just ahead of last month’s Fed meeting, so the dollar debasement story so far is looking a little weak. As we’ve mentioned before, the same holds true for inflation. In the developed world, inflation is only really an issue for the UK - less so in Canada. But it’s not running away in the fashion that many have feared. So what’s it going to take to make new highs on gold? Probably a modest dollar wobble but more likely, as the deadline for the fiscal cliff looms larger and the markets become a little more concerned as to the consequences. The 1mth inverse correlation between the dollar and gold is at -.67 vs. an average of -0.54 for the year to date so, unless this changes dramatically, then it’s in the dollar where gold’s fate lies for the remainder of the year.
Disclaimer The analysis we provide is based on the average estimate of price movements in one day. Does not guarantee what we deliver is actually a proper and correct. Everything that happens in the decisions you make on your trading transaction is to be Your responsibilities. Visit Us www.deryworldscorp.web.id
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