Bullion Weekly Technicals 28 January 2014

Gold – Daily Chart

The rally off the December low has briefly taken the gold price above resistance at 1260.60/1272.56 (December peak and August low) to 1279.13 before reversing lower.

No daily close above this resistance zone has been made, though, which means that we keep our neutral outlook.
The non-confirmation of recent gold strength by the silver price, which hasn’t significantly risen, also makes us weary of this latest advance in the gold price.
Only a daily close above this week’s 1279.13 high will make us change our forecast to a bullish one. In this case the area seen between the 200 day moving average at 1317.88, the July peak at 1349.31 and the mid-September and October highs at 1362.23/1375.37 will be in focus.
Should the gold price be rejected by resistance at 1260.60/1279.13, though, a retest of the 1225.00/1211.57 (early December low) looks to be on the cards.
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