{"id":4381,"date":"2009-10-22T11:02:45","date_gmt":"2009-10-22T16:02:45","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=4381"},"modified":"2009-10-22T11:02:45","modified_gmt":"2009-10-22T16:02:45","slug":"gold-consolidates-while-setting-higher-lows","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/10\/22\/gold-consolidates-while-setting-higher-lows\/","title":{"rendered":"Gold Consolidates while Setting Higher Lows"},"content":{"rendered":"

By Fast Brokers<\/strong> – Gold continues to consolidate around the psychological $1500\/oz level while setting lower highs and higher lows.\u00a0 This pattern tells us there is a wedge forming, which is why we installed a downtrend line.\u00a0 Gold\u2019s sideways movement reflects investor indecisiveness in terms of whether to keep the risk rally rolling.\u00a0 Analysts and bankers are barking from both sides as doubt creeps back into the broader market.\u00a0 However, Q3 earnings are beating expectations and although econ data has been negatively mixed, it\u2019s solid nonetheless.\u00a0 Meanwhile, the Fed\u2019s Beige Book shows the central bank is not even close to tightening liquidity, meaning Dollar\u2019s near-term downward trajectory is intact.\u00a0 However, the ECB is getting antsy and may opt to take some dovish action should the EUR\/USD breakout to the topside again.\u00a0 On the other hand, actions speak louder than words, and overall central banks continue to gravitate towards a more hawkish monetary stance.\u00a0 This is good news for gold\u2019s near to medium-term outlook since the precious metal is negatively correlated with the Dollar.<\/p>\n

All eyes will be on the EUR\/USD\u2019s interaction with 1.50 and the Cable\u2019s ability to separate itself further from 1.65.\u00a0 We recognize consolidation in the AUD\/USD and technicals continue to favor the topside in all of these currency pairs.\u00a0 Therefore, gold\u2019s present consolidation is not necessarily a bad thing since the process develops a new support base should investors decide to extend the precious metal\u2019s rally towards $1100\/oz.\u00a0 The EU will be releasing a wave of PMI numbers tomorrow to go along with Britain\u2019s Prelim GDP and America\u2019s Existing Home Sales data.\u00a0 Therefore, gold and the FX markets could experience heightened volatility as the week comes to a close.<\/p>\n

Technically speaking, gold faces topside barriers in the form of our downtrend line along with 10\/21, 10\/20, and 10\/14 highs.\u00a0 As for the downside, gold has our 1st and 2nd tier uptrend lines serving as technical cushions along with 10\/21 and 10\/16 lows.\u00a0 Additionally, the psychological $1500\/oz level should continue to play a lead role as long as it\u2019s in the picture.<\/p>\n

Present Price: $1055.85\/oz<\/p>\n

Resistances: $1058.75\/oz, $1061.40\/oz, $1065.15\/oz, $1068.06\/oz, $1070.66\/oz<\/p>\n

Supports: $1055.46\/oz, $1051.91\/oz, $1048.62\/oz, $1045.32\/oz, $1042.96\/oz<\/p>\n

Psychological: $1050\/oz, $1075\/oz, $1100\/oz<\/p>\n

\"\"<\/a><\/p>\n

Market Commentary<\/strong><\/em> provided by Fast Brokers<\/strong><\/span><\/span>.<\/a><\/p>\n

Disclaimer:<\/strong> FastBrokers\u2019 market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell\/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.<\/p>\n

Risk Disclosure:<\/strong> There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Fast Brokers – Gold continues to consolidate around the psychological $1500\/oz level while setting lower highs and higher lows.\u00a0 This pattern tells us there is a wedge forming, which is why we installed a downtrend line.\u00a0 Gold\u2019s sideways movement reflects investor indecisiveness in terms of whether to keep the risk rally rolling.\u00a0 Analysts and … <\/p>\n

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