Gold price trapped in a box… for now
After getting down as low as $1597 in early trading yesterday the gold price rallied strong into the close and finished up around the $1636 level. This morning there has been some positive follow through with gold getting as high $1650.
24 hour £ gold:
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24 hour $ gold:
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3 month gold:
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On a three month chart it is very clear that the gold price is trading in a box. With the bottom of the range at $1582/£1017 and the top at $1678/£1087. The 150 DMA, that great long term level of support, has ticked up to $1590 now.
It looks like the gold price will remain in its box for a while yet as the bulls regroup and consolidate after the losses of the previous week. These consolidation phases can last weeks, but with the markets the way they are at the moment and more money printing coming from the world central banks a break out could happen very quickly.
Watch for a close above $1680/£1090 to signal that gold has broken from its box and is making a bid for $1730/£1110. On the downside expect to see $1600/£1025 to hold – a level that will be joined in the next week or so by the 150 DMA – making $1600 a real ‘must hold’ level and an area the will be defended strongly.
Gold Charts courtesey of www.goldmadesimple.com
Related posts:
- Gold price keeps testing that $1600 level
- Gold price liquidation continues as gold falls to $1700
- Gold price rebounds as the 200DMA holds again
- UK National debt and the price of gold – 4 year price target should be £4750-5000
- $1800 gold price shows solid support as gold bounces to $1850
Link to this article: : http://www.goldmadesimplenews.com/gold/gold-price-trapped-in-a-box-for-now-5374/
Posted by Jason Cozens on Oct 6 2011. Filed under Analysis, Gold News, Markets.
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