GOLD Technical Updates 18-Oct-2011

Commodities Market: Technical Outlook

October 18, 2011

R2=1708.39

R1=1691.21

PP=1677.79

S1=1660.60

S2=1647.19

Gold traded in a range of 31$ and closed lower at 1671.22$, down 8.45$. Currently, gold is facing strong resistance at the 100-DMA standing at 1684$ any fall from here will initially target yesterday’s low of 1665$. Any further fall will make it towards the 14-DMA crossing at 1656$. The Bollinger Bands are of the view of consolidation.I suggest investors to wait for dips. Supports are present at 1664.55$ and 1655.76$, while gold will find resistance at 1684.14$ and 1695.15$, respectively

Fundamental:
Gold prices held steady on Tuesday, with investors looking out for more clues from the euro zone on whether the alliance will come up with a concrete plan to solve the debt crisis, after Germany cautioned against any definitive solution. If European nations failed to produce a concrete deal, the dollar could benefit, denting sentiment in commodities especially in gold.

Crucial Levels

1655,1625,1575,1530,1480

By

M.Zohaib Gadit

Forex Trading Consultant