Gold Price Technical Analysis 10-14-2016
Gold’s main trend is down according to the daily chart. The catalysts behind the weakness are a stronger U.S. Dollar, greater demand for higher risk assets like stocks and increasing expectations for a Fed rate hike in December.
However, the market has traded mostly sideways this week after last week’s steep sell-off. A good support on daily chart stands at 1248$. The market also continues to straddle the post-Brexit bottom at $1259.10.
The consolidation around 1250 soon will be over and the first resistance it has to face stands at 1266$. The metal is trading just at the 50d and 100d MA. A small bet on the upside to get some dollars looks like a good idea. Go long above 1250, targeting 1266, the first resistance.
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