Gold defies gravity as new highs are reached
City Index September 30, 2010 8:11 PM
<p>Gold continues to climb higher, to trade above the key $1300 level. Whilst some analysts are calling for the metal to reach $1500, the commodity […]</p>
Gold continues to climb higher, to trade above the key $1300 level. Whilst some analysts are calling for the metal to reach $1500, the commodity based on the December contract may find technical resistance at $1330 per troy ounce.
The daily chart shows a clear uptrend from the July $1159 low to gain +13.41% at the new high. The hourly chart shows a thrust higher with a consolidation pattern for the short term.
A break above $1313 could signal a further thrust towards $1319 – $1330 but if the metal fails to break higher and instead trades below $1305 then we may see a pullback towards $1285 for the near term support base.
Parabolic moves as we are now seeing can be considered as a strong trend but sharp reversals can be expected if sudden volatility breaks below support levels.
Source: City Index Trading Platform
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