Gold holding steady ahead of the FOMC

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Looks like the bullion bulls are looking for an early boost from the Fed this side of Xmas after the metal put on a bit of a spurt yesterday to $1718.80 and pulled away from the support of the 100 day MA around $1704.55.

Recent dips have been contained ahead of the 200 day MA currently around $1662, with moves towards $1685 enticing bargain hunters and safe haven demand.

As the Fed’s ‘Operation Twist’ expires at the year end , there are some corners hoping the Fed will extend the buying of longer term US treasuries and curb sales of the shorter term debt , which would be seen in some circles as further quantitative easing and kept the underlying bias positive for Gold.

Initial resistance is now up at yesterday’s high and $1730, with ¬†support now at $1703 and $1686

Gold’s currently sitting around $1710

2012-12-11T08:06:38+0000

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Gold

Pete Jackson

2 Comments

  1. Gold near term outlook:
    The market continues to consolidate from the Oct 5th high at $1798, potentially forming a triangle/pennant over that time. Though these are seen as continuation patterns suggesting an eventual upside resolution, another few weeks of trading in a tighter and tighter range is favored first . Note the series of 3 wave moves in both directions (a-b-c’s) adds to the triangle view, as these patterns break down to a series of 5, 3 wave moves .Resistance is seen at 1717/20 (50% retracement from the Nov 23rd high at $1755) and the ceiling of the potential triangle/bear trendline from Oct (currently at $1742/45), while support is seen at the base (currently at $1681/84), and the Nov 5th low at $1671/74.

  2. GM Pete, As usual I am looking for your order board info so as to give me an idea where the market is lined up this morning. Very tight range so far.

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