gold overview

[DollarBull]

Well gold is now on its way up again and it can beat last year's high

I think Gold has only a limited upside potential in the medium term because the stock market in US has had an impressive rally and may pull back significantly and it will strenthen USD for the next few months. The Gold rally will restart sometime after April once US tax revenues will hit record low and the Govt will be forced to reissue massive debt. And that rally may last much longer.

[blissreel]

I think Gold has only a limited upside potential in the medium term because the stock market in US has had an impressive rally and may pull back significantly and it will strenthen USD for the next few months. The Gold rally will restart sometime after April once US tax revenues will hit record low and the Govt will be forced to reissue massive debt. And that rally may last much longer.

Well thank you for that quick and informative reminder.

[blissreel]

Gold edged higher to 1163 last week but lost momentum ahead of 61.8% retracement of 1227.5 to 1075.2 and turned sideway. With 1119.2 support intact, another rise could still be seen and above 1163 will bring stronger rebound into 1169.3/1227.5 resistance zone. However, upside should be limited there and bring another fall to continue to consolidation pattern from 1227.5. On the downside, below 1119.2 will suggest that recovery from 1075.2 has completed already and will flip intraday bias back to the downside for 1075.2 and below.

In the bigger picture, rise from 681 is expected to develop into a set of five wave sequence with first wave completed at 1007.7, second wave triangle consolidation completed at 931.3. Rise from 931.3 is treated as the third wave and has possibly completed at 1227.5 after missing 100% projection of 681 to 1007.7 from 931.3 at 1258. Considering that weekly MACD is staying below signal line, consolidation from 1227.5 is expected to extend further, either in form of sideway consolidation or a deeper pull back to 1026.9/1072 support zone, or even further to retest 1000 psychological level. But after all, downside should be contained well above 931.3 support and bring up trend resumption to another high above 1227.5.

In the long term picture, rise from 681 is treated as resumption of the long term up trend from 1999 low of 253 after interim consolidation from 1033.9 has completed in form of an expanding triangle. Next long term target is 100% projection of 253 to 1033.9 from 681 at 1460 level. We'll hold on to the bullish view as long as 931.3 structural support holds.

[currencytrading]

Gold is currently poised to remain firm amid healthy physical demand after the metals corrected last week.