Technicals | Oct 23 2007
The gold price slid almost US$10 per ounce overnight but as the technical chartists at Barclays Capital point out, the most important thing was the price held at technical support around its October 17th low of US$752 per ounce.
According to the chartists this level is now a pivotal point for the gold price shorter-term, as a close below here would suggest a deeper pullback in the price, particularly as momentum in the market is declining.
Given the fall in momentum the technical view is further volatility in the metal price can be expected, though the chartists suggest it is possible the price has traced out the lower end of a range.
Taking a more medium-term view the technical chartists continues to see a test of US$800 per ounce as likely, while as long as the price consolidates above US$685 per ounce there should be an eventual test of the all time high around US$850 per ounce.