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Gold Analysis 12th November Weekly Forecast, Technical Analysis, Sentiment Overview

Gold Analysis 12th November Weekly Forecast, Technical Analysis, Sentiment Overview

Gold Analysis 12th November Weekly Forecast, Technical Analysis, News

Gold Market Sentiment Overview – Gold ended the week around the $1730 per ounce level on Friday, after moving as high as $1738.71, a two-week high for the precious metal. A risk aversion tone has dominated throughout the week with the S&P 500 index (often seen as a barometer for risk) experiencing its worst weekly percentage basis drop since June. The S&P 500 printed a decline of 2.4% over the week.

gold chart november 12th weekly update 300x258 Gold Analysis 12th November Weekly Forecast, Technical Analysis, Sentiment OverviewBroad based dollar strength (see our latest dollar index update) has been found this past week, which would often signal a decline for gold. However, gold bullion has recorded the first weekly basis gain since early October, and increased in value by over 3%.  

Inflows into Gold ETFs have come in at over 10.5 tonnes over the last three trading days alone. Interest in gold exchange-traded funds has picked up recently as the ultra-loose monetary policy from central banks, with an associated debasement of currencies, remains a key focus for the investing masses; as does the fiscal cliff and European debt crisis.

Gold Technical Analysis Overview

  • The XAUUSD chart shows a bullish engulfing candle has formed on the back of the 3% increase in value for gold this week.  The ultimate low of the week came in just above the 50% retrace of the last swing lower, from the $1800 area resistance.
  • We have recently highlighted this area as a potential resistance zone with the 50% retrace aligned with prior support lows from 26/9/12 at $1736.
  • If price can move above last weeks high the 61.8% retrace level comes in around $1750 and is a potential resistance level in its own right.
  • We continue to see the $1800 area prior resistance zone as a key factor; with this in mind, speculative  longs may now be entering in anticipation of a break above $1800.
  • The corrective risk is for a reversion to the recent range, as the current $1730 area marked the last two weekly highs as can be seen on the W1 Gold (XAUUSD) chart below. 
Gold Analysis – Weekly Chart

gold weekly analysis 2012 11 12 Gold Analysis 12th November Weekly Forecast, Technical Analysis, Sentiment Overview

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