GOLD Technical Updates 17-Oct-2011

Commodities Market: Technical Outlook

 October 17, 2011

R2=1697.35

R1=1688.36

PP=1674.69

S1=1665.70

S2=1652.03

Gold continued with its consolidation movement and closed higher at 1680$, just below the 100 DMA. Any rise above the 100-DMA will open the way towards 1704$.If gold breaks $1675 then selling pressure is expected and downside targets will  be $1650, $1625 and $1575. It is suggested to view any upside as an opportunity to ‘SELL’ keeping stoploss above 1704$. The support and resistance are present at 1666$ and 1697$, respectively.

Fundamental:
Gold holds trading in a positive zone today, as investors await concrete steps to tackle the euro zone debt crisis that could come out of a European Union summit this weekend. Finance ministers and central bank governors of the Group of 20 major economies said they expected the October 23 summit to "decisively address the current challenges through a comprehensive plan. If we see risk assets continue to rally with concrete steps in Europe in place, gold will have the potential to break the $1,700 resistance.

By

M.Zohaib Gadit

Forex Trading Consultant