Commodities Market: Technical Outlook
October 06, 2011
R2=1677.46
R1=1657.19
PP=1626.61
S1=1606.34
S2=1575.76
Gold continued with its consolidation movement and closed higher at 1638$, up 17.9$. The market range remained decent at 49.15$. Currently, gold is likely to face resistance of the 14-DMA and the 100-DMA at 1662.8$ and 1671.2$; any rise above the 100-DMA will open the way towards 1700$ mark, however, any downward movement will be tested at the 200-DMA standing at 1570$.I suggest investors to remain sellers on the higher side, keeping stoploss above the 100-DMA. The support and resistance are present at 1616.04$ and 1662.80$, respectively
Fundamental:
Gold ticked up in volatile trade on Thursday due to a steadier euro, gains in equities, purchases from jewellers, and hopes that Europe's moves to prop up its ailing banking sector could cushion the fall. Investors will turn their attention to a meeting of the European Central Bank policy meeting on Thursday, when President is likely to prepare the ground for a pre-Christmas interest rate cut.
Gold ticked up in volatile trade on Thursday due to a steadier euro, gains in equities, purchases from jewellers, and hopes that Europe's moves to prop up its ailing banking sector could cushion the fall. Investors will turn their attention to a meeting of the European Central Bank policy meeting on Thursday, when President is likely to prepare the ground for a pre-Christmas interest rate cut.
By
M.Zohaib Gadit
Forex Trading Consultant
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