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Gold breaks 1720 support in one stroke on ESM downgrade rumors

By FXstreet.com,  November 30, 2012, 11:02:00 AM EDT

FXstreet.com (Barcelona) - Having plunged to 1720 low just ahead of the New York session, Gold was able to bounce to 1723/26 zone afterwards but not for long. A new wave of USD buys sent the precious metal rapidly below the 1720 support, finding a new low at 1715.

The move may have been inspired by a rumor that the ESM AAA rating was downgraded by Fitch.

"Mixed signals on near-term studies show room for further recovery and test of important 1735/38 barriers on hourly chart, while 4h chart indicators still hold in the negative territory and lacking momentum, as 55 day EMA caps for now", wrote Windsor Brokers analyst Slobodan Drvenica, expecting a rise to 1738 and 1741 in case of a break above 1735. "While slide below 1720/17 supports would signal an end of recovery phase and shift focus back to 1705", Drvenica added.




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Forex and Currencies

Referenced Stocks:



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