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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% 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.

We are turning more positive on gold once more

Gold Analysis & Support/Resistance

Trading outlook:

We are resuming with our positive outlook on gold. Support levels strengthening at higher levels and improving momentum suggests that weakness is ow a chance to buy.

Support:
  • $1578 – 13th and 14th February highs, 17th February low
  • $1571 – intraday low 13th February
  • $1562 – 29th Jan low and 5th Feb high, 7th and 11th Feb lows
Resistance:
  • $1591 – 3rd February high
  • $1611 – 8th January high
  • $1620 – February 2013 reaction high
Today’s morning commentary:

We are turning more positive on gold once more. The consolidation that arose in the wake of the sharp correction back from $1591 is now growing with a positive bias once more. Although the move is not decisive, there is a more positive outlook developing on momentum indicators now. The RSI is edging back above 60 and has broken a recent trend lower, whilst MACD lines are close to crossing higher as Stochastics rise towards 80. Weakness is increasingly being bought into and the bulls are eyeing $1591 again today. We spoke recently about the growing support levels. There is a higher low at $1562, the two month uptrend is at $1570, the market is trading clear of the 23.6% Fibonacci retracement (of $1445/$1611) at $1572, and now the breakout at $1577 was a basis for another higher low yesterday. We continue to look at weakness as a chance to buy, and we favour a move above $1591 to test $1611.

Daily XAU

Hourly XAU

Richard Perry

Richard Perry

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