Gold: Milestone Week? 200-Weekly MA Defenders Giving in...
Gold: Milestone Week? 200-Weekly MA Defenders Giving in...
Gold has caught, yet again, another strong bid tone, with today's
highest at $1,276.50, as the 'risk-off' sentiment and broad-based USD
weakness, themes established in the market ever since the disappointing
BoJ and FOMC policy outcomes, persist.
FOMC, BoJ catalysts for next cycle highs?
Gold
is currently rising to the extent that only a few coupe of dollars to
the upside is what separates the current price from the 2016 trend high
established last March 11th. The persistent over-promises and
under-delivery from Central Banks, the latest case being the BoJ and
FOMC, both non-committal in policy terms, has taken its toll on risk
assets, with the safe-haven allure of the yellow metal one of the assets
benefiting the most.
Gold key level: The 200-weekly MA
A
break into new highs, which may confirm the first weekly close above
the 200-weekly EMA since lost back in April 2013, would be yet
additional evidence that the long term trend in the gold market has
shifted its focus to the upside. During 2013 and 2014, successive
attempts to break above this key EMA failed miserably, which was then
the trigger for a multi-month downtrend resumption. This time around,
however, after consistent tests throughout 2016, it looks as though
bulls are finally having the momentum in their favour to make the close
above the moving average a reality. Should a break be confirmed, 1,300
is immediate resistance, although on a more long -term basis, the
projection fr the next upside leg could take us all the way up towards
$1,500, judging by the initial $200 upleg in 2016 prior to the current
consolidation period.
