trading course Click  here to gain access to a free trading course  from INO - Market Club.
Gold Technical Analysis 3rd January – XAUUSD

Gold Technical Analysis 3rd January – XAUUSD

Gold Technical Analysis 3rd January – XAUUSD

  • The price of gold (XAU/USD) has moved to the downside today, as the US dollar has broadly outperformed on an intra-day basis.  The currency majors including EUR/USD and GBP/USD gave bearish daily candle reversal patterns yesterday, hinting at the near to mid term dollar strength scenario which has subsequently played out today.
  • This comes after Wednesday’s two-week high printed for the precious metal, following the last-minute deal struck by U.S. policy makers to avert the so called “fiscal cliff”.   Market participants are now focused on the upcoming U.S. budget talks as the celebrations around the vote to avert a fiscal crisis have given way to deeper analysis.
  • Price is now trading around the $1679 area and has seen a 0.26% decline today, roughly inline with crude oil (-0.48%), silver (-0.46%) and the EUR/USD (-0.64%).
  • The XAU/USD daily chart below shows gold had moved to the 50% corrective retracement area – just under the $1700 handle – on the initial rally following the vote to avert a fiscal crisis.
  • The key $1635 technical confluence area, as highlighted in our previous gold analysis updates, has now proved to be a decisive near term pivot for the XAU/USD.
  • From a technical perspective we will be monitoring price around the $1700 handle on any upside resumption.  Any extended move higher would also bring the upper channel line into focus, currently around $1716 but not to far from the 61.8% retrace area – and potentially aligned with this key Fibonacci level over the coming trading sessions.
  • To the downside, the 1674.50 area 5/11/12 daily low is an initial technical point of interest.  However, the key technical confluence area around $1635 is our primary focus and an area where we will be monitoring the gold price action should XAUUSD see an intensified selling scenario going forward.

Gold Technical Analysis Update – 3rd January 

gold technical analysis Gold Technical Analysis 3rd January   XAUUSD

Gold news, gold technical analysis, forecast and technical outlook report – 3/1/2013.

Leave a Reply