Bullion Weekly Technicals 05 November 2013

Gold – Daily Chart

The jury is still out as to which direction the medium term trend will take

Gold rose to but was then capped by the 2013 resistance line, now at 1353.06, and thus remains in a longer term downtrend.

As stated before, for our short- and medium term outlook to once again become bullish we would like to see at least two daily closes above the 2013 resistance line at 1353.06 and above the October peak at 1362.23 being made.

In this case the late September high at 1375.37 should also be overcome with the 200 day moving average at 1417.70 and the August peak at 1434.05 as well as the 2012-13 resistance line at 1459.18 being back on the map.

Should a daily close below the current November low at 1305.98 be seen, though, our short term forecast will become bearish with the five month support line at 1265.52 and the October low at 1251.58 then being back on the map. Failure at the latter level will make us medium term bearish as well. We slightly favour this bearish outlook.

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