Gold broke the shackles of a two month consolidation range last week as it moved higher through the old key May peak of $1764. After a few days consolidating this breakout, the gold bulls are again pushing ahead. Yesterday’s close beyond resistance at $1779 continues the move as the uptrend of the past three weeks guides the market to new multi-year highs. This breakout looks to be made on more solid ground, with decisive strength of momentum. Stochastics are holding consistently above 80, whilst RSI is into the high 60s and MACD lines are tracking decisively higher. We see the way towards at least a test of the old 2012 high at $1795, whilst the bulls will be encouraged that beyond that resistance there is little to prevent a run towards the all-time high of $1920. The hourly chart shows the bulls already looking to build support at the $1779 breakout this morning. We would still look to use near term weakness as a chance to buy, with a band of initial support $1765/$1779. The support of the near four week uptrend comes in at $1761 today. We remain bullish whilst $1744 remains intact.
Risk Warning for Financial Promotions
Hantec Markets' various market reports and commentary are issued by Hantec Markets Limited, who is authorised and regulated by the Financial Conduct Authority (FCA) in the UK, No. 502635. The reports are prepared and distributed for information purposes only.
Trading in Foreign Exchange (FX), Bullion and Contracts for Differences (CFDs) is not be suitable for all investors due to the high risk nature of these products. Forex, Bullion and CFDs are leveraged products that can result in losses greater than your initial deposit. The value of an FX, Bullion or CFD position may be affected by a variety of factors, including but not limited to, price volatility, market volume, foreign exchange rates and liquidity. You may lose your entire initial stake and you may be required to make additional payments. Please ensure you fully understand the risks involved, seeking independent advice if necessary prior to entering into such transactions. Before deciding to enter into FX, Bullion and/or CFD trading, you should carefully consider your investment objectives, level of experience, and risk appetite. You should only invest in FX, Bullion and/or CFD trading with funds you are prepared to lose entirely. Therefore, only your excess funds should be placed at risk and anyone who does not have such excess funds should completely refrain from engaging in FX and/or CFD trading. Do not rely on past performance figures. If you are in any doubt, please seek further independent advice.
The reports do not constitute personal investment advice, nor do they take into account the individual financial circumstances or objectives of the clients who receive it. All information and research produced by Hantec Markets is intended to be general in nature; it does not constitute a recommendation or offer for the purchase or sale of any financial instrument, nor should it be construed as such. All of the views or suggestions within the reports are those solely and exclusively of the authors, and accurately reflect their personal views about any and all of the subject instruments and are presented to the best of the authors' knowledge. Any person relying on these reports to undertake trading does so entirely at his/her own risk and Hantec Markets does not accept any liability.
© 2014 Hantec Markets Limited