Gold holding steady ahead of the FOMC

View Comments

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


All|Europe|Market Rumors|Regions


Pete Jackson


  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.


© Copyright 2015 ForexLive™  |  Advertise With Us  |  Login To Comment  |  Sitemap

HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.

ADVISORY WARNING: FOREXLIVE™ provides references and links to selected blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the blogs or other sources of information. Clients and prospects are advised to carefully consider the opinions and analysis offered in the blogs or other information sources in the context of the client or prospect's individual analysis and decision making. None of the blogs or other sources of information is to be considered as constituting a track record. Past performance is no guarantee of future results and FOREXLIVE™ specifically advises clients and prospects to carefully review all claims and representations made by advisors, bloggers, money managers and system vendors before investing any funds or opening an account with any Forex dealer. Any news, opinions, research, data, or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. FOREXLIVE™ expressly disclaims any liability for any lost principal or profits without limitation which may arise directly or indirectly from the use of or reliance on such information. As with all such advisory services, past results are never a guarantee of future results.