Gold Price Forecast and Analysis 26 November 2013 Trend is Sideways
On Monday Gold prices printed 1227.45 per troy ounce, the lowest since 8 July 2013. Gold prices rebounded from 1227.45, our target was 1225 for yesterday. Price of gold bounced on short covering as gold price moved mildly into oversold territory and weaker than expected home sales data. Gold price fell down on fears of tapering in asset purchase by Federal reserve . FED decision depends on economic growth so every US data showing strength in economy will push down the prices and every US data showing weakness in economy or stay in economy will favour higher prices.
US Dollar showed some weakness after release of weaker than expected pending home sale data. Dollar index against a basket of six other major currencies, was down 0.25% to trade at 80.77 and usually gold takes benefits from Dollar weakness because gold is considered as an alternative asset and it makes dollar-priced commodities cheaper for holders of other currencies.
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As I discussed this point earlier in different posts and I am repeating it again, In my opinion Fed will not pull the trigger before march 2014. There are very rare chances that FED will reach at any decision in its next policy meeting. There are great chances that today,s Data will not support economy. Furthermore, In early January 2014 we may see another debt ceiling battle between the Republicans and Democrats.
We stopped out yesterday at 1249.50 per troy ounce and low since publication of this post is 1249.55 per troy ounce. Comex gold prices rose to a weekly high of $1257.85 during European morning trade. 14-DMA stands at 1274.00 which will serve as next target for today, RSI is showing improvement Stochastic Oscillator is Oversold which indicates neutral to higher prices in upcoming sessions.
Resistance 1261.00 1268.00 1273.00 1278.00 1282.00
Gold Price Forecast
Based on the discussion above we suggest buying gold at 1243.00 keeping stop loss at 1233. First target is 1260.00 and second target is 1272.00. Please cancel the limit order if we fail to get any entry before the market closure.
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