Gold price holding steady around the $1765 level as S&P see ‘very weak growth’ in the UK for 2013
Back at the start of September when the gold price was hovering around $1720 level we noted:
As we speculated last week and this, there really isn’t much overhead resistance until we start getting around the $1777 level, which is where we’ll probably find the shorts camping out sometime next week.
Fast-forward to today and that is exactly what has happened. Gold went pretty much straight up with the shorts running for cover, and they’ve now regrouped and seem to be defending that $1777 level quite strongly.
Gold $ hourly:
On the hourly chart we can see the range the gold has been stuck in now since the September 13th (barring that brief ‘pop’ last Friday). However it looks like the bulls don’t wont to let the price to fall too far and buying comes in every-time gold dips below $1760.
On a longer term chat we can see that the 50 day moving average has got back above the 200 day moving average, a bullish technical indicator aptly named in this case a ‘golden cross’.
In terms of € gold it keeps closing at new daily highs and is now well above the previous all time daily closing high of €1341 set back in September 2011.
“In particular, we forecast another year of very weak growth in 2013 in France and the U.K., and further declines in output in Italy and Spain,” added Mr. Six, in the report published today, “The Eurozone’s New Recession–Confirmed.”
Which means that we could see £ gold start to catch up significantly in coming months, why? Because another year of weak growth predicted in 2013 all but guarantees that the Bank of England will print sometime in November or December.
The only unknown is whether they will follow the Fed’s footsteps and print without limit.
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Link to this article: : http://www.goldmadesimplenews.com/gold/gold-price-holding-steady-around-the-1765-level-as-sp-see-very-weak-growth-in-the-uk-for-2013-8106/