Gold Analysis 28th Dec – Year End Flows Weighing – Price Holding Above Key Technical Level
- The price of gold (XAU/USD) has been oscillating around the $1660 per ounce level over the last few trading sessions – unable to exceed this week’s high during trading today (27th December).
- The dollar has dropped (typically supportive for gold) on the back of news that the US Treasury is about to adopt “extraordinary measures” in order to avoid hitting the federal debt ceiling. The U.S. House of Representatives is due to stage a session this Sunday – prior to the December 31st deadline on reaching a deal to avert a series of automatic tax increases and spending cuts.
- The near term gold price action has us monitoring the prior 5/11/12 daily low area on any upside move. This area has confluence with a the 23.6% Fibonacci retracement level as can be seen on the daily timeframe gold chart below.
- Any move lower brings a key technical level into focus comprised of the following: 61.8% Fibonacci retrace, FE100 expansion from a potential ABC correction point and the previous resistance area around $1630 - as highlighted in our previous updates. This area has acted as support on two daily attempts to move lower and a sustained break under would be a constructive technical development.
- Spot gold is heading into the year end up around 5% on the annual basis and set for the twelfth consecutive gain. With this in mind there could be an element of year-end selling behind the recent bearish price action.
Gold Technical Update For 28th December – Daily Chart Update
Gold Technical Analysis Today, Gold Forecast, Technical Report, Outlook 28/12/12