Gold approaching my Target zoneAs firstly discussed on title of my yesterday's session commentary: "Gold reversed however Bullish potential remains strong" and in discussion: "My position: Game plan is simple, Buying Gold above #2,752.80 benchmark again and #2,742.80 break-out to the downside has #2,700.80 benchmark on aim."
Fundamental analysis: The inability to pierce aggressively below #2,742.80 Support on Hourly 4 chart along with the sharp fall on equities and DX taking strong hits, are putting Gold (Xau-Usd Spot) under heavy Buying pressure again. At the same time DX has made a new multi-Month Low’s, and the fact that Gold was still more or less stationary when DX was in the same manner leads me to believe that Short-term correlation is not switched (Gold - DX / my main correlation and point of interests at the moment) and capital drawn from DX is making Investors park their capital to Low-risk assets such as Gold which is soaring at the moment. DX Bottom rejection is preventing steeper uptrend on Gold, defending the #2,772.80 - #2,782.80 Resistance level comfortably. Same configuration suggests that as long as DX is Trading near local Low’s, while Bond Yields engages movements within Neutral Price-action Rectangle, Gold will Trade under heavy Buying pressure. In any case the Hourly 4 and Daily chart Technicals suggest that if #2,772.80 firmly gets invalidated, I should be seeing #2,785.80 - #2,792.80 configuration next and #2,800.80 psychological benchmark (record High's) in extension. Keep your Buying orders and Trade accordingly.
