Gold Technical Analysis – 11th January Update
- Gold continues to move away from our key downside technical area of interest around the XAUUSD $1635 level. This has been our primary focus within the recent gold technical analysis updates.
- The price of gold is now potentially heading for the biggest weekly basis rise seen in over a month. This comes after the decision from the ECB (European Central Bank) to hold rates near current record lows.
- Tokyo gold futures contracts have now reached a record high at 4,820 yen per gram ($1,699.62 oz). This comes as the Japanese yen has plummeted to a 2-1/2-year low.
- The latest price action development was a break of the 8/1/13 inside day to the upside.
- The XAUUSD pair subsequently moved up to test the $1672 area yesterday – a previous prominent swing low from early November. The daily from yesterday candle represents a 250 pip move, well above the 60 day average gold trading range of 162 pips.
- Going forward we will be monitoring the price action around the recent range extremities ($1700 and $1625) to gain directional bias.
Gold Technical Analysis – 11/1/13 – Daily Chart