Gold trades under pressure after rebound
James Chen November 28, 2014 8:09 PM
<p>Gold (daily chart shown below) has begun to point lower once again after having spent much of November rebounding and making a modest recovery from […]</p>
Gold (daily chart shown below) has begun to point lower once again after having spent much of November rebounding and making a modest recovery from the new four-year low around 1130 that was established just three weeks ago.
That low dipped under major support around the 1180 level, which had been previously tested and respected three times in the recent past – in June and December of 2013, and then in October of this year.
The rebound from the new 1130 low rose above the noted 1180 level to hit a high around 1207 and the 50-day moving average late last week before retreating.
From a longer-term perspective, gold continues to be entrenched within strong bearish trend. November’s rebound served as a respite within this downtrend, but the precious metal continues to trade under pressure.
With any re-break and sustained trading below the 1180 level, gold could resume its bearish stance after the recent rebound. In this event, price action could potentially begin to target new long-term lows around the 1100 downside support level.
To the upside, the 1200 price area and 50-day moving average should continue to provide some intermediate resistance on any price advances.
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.