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Friday’s Technical Analysis: Spot Gold

Posted by: : Paul EbelingPosted on: October 17, 2014 Friday's Technical Analysis: Spot Gold

Friday’s Technical Analysis: Spot Gold

Spot Gold closed higher Thursday.

The mid-range close sets the stage for a steady opening when Friday’s US session begins trading.

Stochastics and the RSI are Neutral to Bullish signalling that sideways to higher prices are possible near term.

If it extends this month’s rally, the 38% Fibo retracement level of the July-October decline crossing is the next Northside target.

Closes below the 10-Day MA crossing will confirm that a shortterm top is in.

In the Asian session, at GMT 0300, Spot gold  is trading at 1238.70,  marginally lower from Thursday’s close.

Spot Gold  is expected to see 1st support at 1234.26, a break there could push it to the next support at 1229.83.

Spot Gold is expected to see 1st resistance at 1244.06, a break there could push it to the next resistance at 249.43.

The precious Yellow metal is trading below its 20 Hr MA, and showing convergence with its 50 Hr MA.

 Note: support for Spot gold comes from jewelry demand from India in the lead up to and during the wedding season, which started in late September. India did record a 176% increase in Gold imports in August to US$2-B from about US$756-M.

Overall, the impact of wedding season spot gold  buying  has faded in recent times as India is no longer the world’s largest Gold consumer, partly because of the on-going government  import restrictions on precious metals. If they are further relaxed, perhaps India will regain its Top spot.

Spot Gold drop to 15-month lows is timely for Asian buyers, but even the Gold loving Indian matriarchs may not be enough to supr the precious Yellow metal through the resistance in the Q-4 unless the Buck retraces some of it Q-3 surge, and the Gold Bears exhaust themselves (run out of cash).

Have a terific week.


Paul Ebeling

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Paul Ebeling

Pattern Recognition Analyst, equities, commodities, forex
Paul Ebeling is best known for his work as writer and publisher of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly-regarded, weekly financial market letter, where he enjoys an international audience among opinion makers, business leaders, and respected organizations. Something of a pioneer in online stock market and commodities discussion and analysis, Ebeling has been online since 1994. He has studied and worked in the global financial and stock markets since 1984.

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