31 Jul 2013
Gold still churning below 1,340.90 resistance – awaiting US GDP / Fed
FXstreet.com (Barcelona) - Gold futures continue to tread water under resistance as traders await major guidance on the direction of interest rates and currencies from the US Fed and multiple data points throughout the rest of the week.
Gold likely to move inversely to DXY once it reacts to this week’s news
Traders in all markets will be focused on US GDP data and the Federal Reserve’s interest rate decision and policy statements on Wednesday. However, gold traders will be watching in particular as its movements are more reactionary to the other asset classes than perhaps any other asset.
Technical outlook for gold
Technicians are still calling for a bit more of a correction in gold to one of three possible support levels: the Fibonacci-generated support at 1,299 and the Fibonacci price projections at 1,280 and 1,249. Resistance for gold comes in at Friday’s high of 1,340.90 and is backed up by the twin peaks at 1,349.10 from 7/23 and 7/24.
Gold likely to move inversely to DXY once it reacts to this week’s news
Traders in all markets will be focused on US GDP data and the Federal Reserve’s interest rate decision and policy statements on Wednesday. However, gold traders will be watching in particular as its movements are more reactionary to the other asset classes than perhaps any other asset.
Technical outlook for gold
Technicians are still calling for a bit more of a correction in gold to one of three possible support levels: the Fibonacci-generated support at 1,299 and the Fibonacci price projections at 1,280 and 1,249. Resistance for gold comes in at Friday’s high of 1,340.90 and is backed up by the twin peaks at 1,349.10 from 7/23 and 7/24.