Gold spikes after week-long rally from lows
James Chen March 26, 2015 6:07 PM
<p>Gold (daily chart shown below) continued its week-long rally as of Thursday morning, spiking to a three-week high above 1219 before retreating. The current rally […]</p>
Gold (daily chart shown below) continued its week-long rally as of Thursday morning, spiking to a three-week high above 1219 before retreating.
The current rally saw the precious metal rebound from a price depth of 1142 in mid-March, which was a re-test of late November’s 1142 swing low.
The long-term, four-year low remains unbroken for the time being at 1131, which was hit in early November of last year.
Prior to the current rebound, gold experienced a precipitous drop from January’s 1307 high down to the noted 1142 low last week.
While continuing to trade within a multi-year bearish trend, gold’s current relief rally could well have further upside towards key resistance levels in the short-term.
On any breakout above the 200-day moving average, the major upside resistance targets currently reside at 1240, 1265, and 1300. Downside support continues to remain around the key 1180 level.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.