Gold Technical Update
XAU/USD 4H Chart 11:30PM EDT 8/31/2012
The previous update on gold looked at a market pushing higher with 1700 as the next target/resistance to monitor. This rally indeed materialized followed by a very narrow consolidation under the 1700 handle (seen in the 4H chart). This is the highest gold has been in 6 months.
The break occurred during the Thursday(9/6) European session, ahead of the ECB policy meeting and Draghi's subsequent press conference. Friday's US Non-Farm Payroll data is also a highly anticipated risk event. (Gold gains if the NFP is very poor and makes QE3 more likely). Basically anything that makes the market believe central banks will do something positive should help boost gold / pressure USD. Let's see if these risk events will indeed help gold continue its bull run.
XAU/USD Daily Chart 7:35AM EDT 9/6/2012
Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.
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