Gold approaching ~$1200 critical support

Discussion in 'Technical Analysis' started by HarryHindsight, Sep 30, 2014.

  1. It’s worth keeping an eye on Gold Futures this week. GC is heading closer and closer to the $1200 level, an area where buying support has emerged in the recent past.

    Will history repeat or will the downwards trend of the last 2 years crack through towards $1000?

    GC 12-14 (Daily)  15_09_2008 - 30_09_2014.jpg
     
  2. support would imply there's someone there to buy

    with no bank prop traders and not even indians buying gold anymore, the market is just marc faber
     
  3. You seriously think a QUAD bottom is a sign of support? If it touches that level it may set off a cascade of sell orders.

    If you are going to perform TA on Gold, you should look at XAUUSD long term and not just the front month. The Daily and Weekly don't look promising for 1200 to hold.

    Dollar strength, Global instability, Central Bank QE easing. A lot of factors involved at the moment, Gold trade at the moment is very precarious. This is one of those times were I wouldn't rely on TA alone.
     
  4. thanks for replies. My guess is gold will crash towards $1000 by Christmas.
    I don't give a huge amount of credence to "TA" but when there's an obvious spot like this I feel it's worth taking note of.
     
  5. Well, for now GC is holding above $1200...

    GC 12-14 (Daily)  30_12_2009 - 10_10_2014.jpg
     
  6. SI 12-14 (Daily)  27_05_2010 - 10_10_2014.jpg
     
  7. toolazy

    toolazy

    I duno, my model says it is racing to 1700
     
  8. Starting from July Gold strongly follows the US Dollar index

    [​IMG]
    chart courtesy of marketvolume.com