Gold Price Analysis- Dec. 10, 2013 - DailyForex.com

Gold Price Analysis- Dec. 10, 2013 - DailyForex.com
Gold Price Could Retest 1180 June Low :: The Market Oracle ...
Fed Balance Sheet vs. Gold Price | Strategic Gold

Posted: 10 Dec 2013 01:43 AM PST

By: DailyForex.com

Gold continued to gain ground against the American dollar yesterday but remained within the last five days trading range. Comments from Fed policy makers showed that they would like to begin to wind down the quantitative easing program sooner rather than later but the market's reaction was somehow limited. Federal Reserve Bank of St. Louis President James Bullard, who is a voting member of the Federal Open Market Committee, said "Based on labor-market data alone, the probability of a reduction in the pace of asset purchases has increased. A small taper might recognize labor-market improvement while still providing the committee the opportunity to carefully monitor inflation during the first half of 2014". I think yesterday's move was a reflection of the uncertainty in the market and continued short-covering.

Investors are well aware of the fact that a few strong jobs numbers don't make a trend and the Federal reserve will probably not want to push the button before the Democrats and Republicans strike a deal to fund the government. Meanwhile, gold charts paint a mixed technical picture. Prices are below the Ichimoku clouds on the weekly and daily time frames but the short term charts are turning positive.

On the 4-hour chart, the pair is trading above the Ichimoku cloud and we also have a bullish Tenkan-sen (nine-period moving average, red line) - Kijun-sen (twenty six-day moving average, green line) cross. With that in mind, I won't be shorting gold until the bears take over and drag prices below the 1225 support at least. In order to confirm a stronger move, look for prices to close below the 1213 support level. In that case, I think the bears will be aiming for the 1200 level next. If the bulls manage to hold the XAU/USD pair above the Ichimoku clouds on the 4-hour chart, we could see the market climbing towards the 1252 level. Only a daily close above that resistance level might provide the bulls the extra power they need to tackle the 1268 level.

Gold Price Could Retest 1180 June Low :: The Market Oracle ...

Posted: 13 Dec 2013 09:26 AM PST

Gold Price Could Retest 1180 June Low Commodities / Gold and Silver 2013 Dec 13, 2013 - 06:26 PM GMT

By: Gregor_Horvat

Gold reversed sharply to the downside at the start of September, through the rising trend line of a corrective channel. As we know that's an important signal for a change in trend, which means that bearish price action is now back in view that could accelerate to the downside soon if we consider recent break of 1251 swing low that confirms a completed wave 2 and wave 3 underway to the lows.

From a larger perspective we believe that gold will continue to weaken, towards 1180 and to 1130 in the next few weeks.

Daily Gold Chart

On 4h Chart Gold has been trading higher since early December, but recovery was made only in three legs, labeled as a)-b)-c) on the chart. We know that three wave move is structure of a corrective price action that now appears completed after recent sharp fall from 1267. Decline is looking impulsive so we believe that is part of a larger downtrend.

Gold 4-Hour Chart

On the short-term chart we can see that price is moving nicely lower, clearly in impulsive fashion from this week highs. We see price moving down in wave iii that could look for some temporary support in 1210-1215 region. From there be aware of a short-term retracement back in wave iv which could be good for intraday traders to join the downtrend.

Gold 1-Hour Chart

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Gregor is based in Slovenia and has been in Forex market since 2003. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets; from candlestick patterns, MA, technical indicators etc. His specialty however is Elliott Wave Theory which could be very helpful to traders.
He was working for Capital Forex Group and TheLFB.com. His featured articles have been published in: Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu. He mostly focuses on currencies, gold, oil, and some major US indices.

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.