Gold Technical & Fundamental Outlook | 16 Dec 2013

FXOpen

Suggestion for Trade: Sell @ $1235, Stop Loss @ $1243, Target $1215.50

After a positive weekly and daily closing last week at $1238/ounce, gold began this week in negative territory and is likely to be engulfed by beers ahead of very crucial Fed monetary policy meeting on Wednesday in which policy makers of the US supreme financial body are expected to make a decision about tapering in asset purchase program as it was hinted in their last meeting.

Major Support & Resistance Levels

At the moment of writing, gold is being traded at $1234 per ounce during Asian session where it is likely to find an immediate support around $1215 (trendline support). A break below this level may trigger further downside price movement up to $1180 (100% retracement and low of 28 June 2013), a fall below this level may allow gold to print fresh multi-year lows.

Gold Technical & Fundamental Outlook | 16 Dec 2013

On upside, immediate hurdle is seen around $1235-$1239 resistance area (Hourly 55 MA, Hourly 200 MA, H4 55MA and H4 100 MA), ahead of $1242 (trendline resistance). A break and daily close above $1242 may open doors for $1265 and $1279.

Technical Indicators

We have just got a bearish crossover signal through hourly 55 MA and hourly 200 MA, whereas on higher timeframes bearish crossovers had been noted a long way ago, so now gold seems to be under a huge influence of beers and further downside is very likely. No divergence is being noted at the moment on MACD. Relative Strength Index (RSI) is showing 45 to 50 readings on hourly to daily timeframes suggesting a downside risk is still there.

Fundamental Scenario

In addition to tapering speculations, US Industrial Production report for the month of November may also cause moderate volatility in the market, analysts are expecting 0.4% reading this time around against -0.1% of the previous one, a better than expected result will be bearish for Gold.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

NZD/USD Exchange Rate Falls from Nearly 5-Month High Market Analysis: GBP/USD and EUR/GBP Poised For More Losses Dollar Falls After Inflation Data: Is a Change in Medium-Term Trends on the Horizon? USD/CAD Retracts from Nearly 2-Month High Market Analysis: EUR/USD Dives While USD/JPY Continues To Rise

Latest articles

Financial Market News

Weekly Market Wrap With Gary Thomson: S&P 500 Index, US Dollar, FTSE 100 Index, Gold Price

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.

  • S&P 500
Indices

European Stock Indices Decline Amid Political Uncertainty

Today, the Eurostoxx 50 index (Europe 50 on FXOpen) has dropped below the early May minimum, reflecting escalating market concerns over the upcoming French elections, as reported by Reuters. Finance Minister Bruno Le Maire's acknowledgment that the current political crisis

Forex Analysis

NZD/USD Exchange Rate Falls from Nearly 5-Month High

The NZD/USD exchange rate has dropped from its highest level in nearly five months. On Wednesday, following the release of US inflation data, the NZD/USD rate exceeded 0.6220 for the first time since 15 January 2024.

However,

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.