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13 Aug 2013
Gold rips over $25 off of the bears’ hides Monday. Will it last?
FXstreet.com (Barcelona) - Gold and silver futures each rallied fiercely Monday after a fairly benign pullback period that lasted 10 trading sessions.
Metals rallying as traders and analysts scramble to identify the catalyst
Some say there was a very large buyer of the metals early Monday in the thin Asian trading markets. Others point to a persistently crowded short trade that has been “on” in the metals. Those two reasons are as good as any, but the rally that occurred was not due to any of the usual suspects like a falling Dollar (the DXY was on the rise Monday) or geo-political tensions (there are parts of the Middle East that are a mess, but no more than usual).
So, the metals complex was on fire Monday for no good fundamental reason – only strange trading influences, a thin session and maybe some technical reasons.
Technical outlook for gold
Technicians still say that gold must take out the recent high at 1,349.10 to open up more short-term upside potential. However, the way it is trading has those technicians eyeing 1,358 – 1,360 as a potential upside target above 1,349.10. Support for gold comes in at 1,324 (short-term uptrend line) and 1,316 (horizontal line support).
Metals rallying as traders and analysts scramble to identify the catalyst
Some say there was a very large buyer of the metals early Monday in the thin Asian trading markets. Others point to a persistently crowded short trade that has been “on” in the metals. Those two reasons are as good as any, but the rally that occurred was not due to any of the usual suspects like a falling Dollar (the DXY was on the rise Monday) or geo-political tensions (there are parts of the Middle East that are a mess, but no more than usual).
So, the metals complex was on fire Monday for no good fundamental reason – only strange trading influences, a thin session and maybe some technical reasons.
Technical outlook for gold
Technicians still say that gold must take out the recent high at 1,349.10 to open up more short-term upside potential. However, the way it is trading has those technicians eyeing 1,358 – 1,360 as a potential upside target above 1,349.10. Support for gold comes in at 1,324 (short-term uptrend line) and 1,316 (horizontal line support).