Technicals | Sep 12 2011
By Chris Shaw
While gold prices dipped from recent highs at the end of last week, technical analysts at Barclays Capital suggest the macro environment has become increasingly gold favourable. This reflects central banks keeping interest rates unchanged, continued uncertainty over the health of the global economy and moves by the Swiss National Bank to limit the strength of the franc.
From a technical viewpoint, the analysts see the weaker end to the week as a corrective setback within an existing uptrend. Reversal patterns signal a near-term top, which suggests a move towards range lows at US$1,750 per ounce and US$1,700 per ounce.
This leaves the technical analysts looking to buy any dips towards US$1,750 per ounce against the US$1,700 per ounce low. Shorter-term upside targets are at US$1,930 per ounce and then US$1,970 per ounce.
Medium-term the technical analysts see support for gold at US$1,790 and then US$1,750 per ounce, while resistance currently stands at US$1,900 and then US$1,921 per ounce.
Average gold price forecasts for Barclays stand at US$1,725 per ounce for the September quarter and US$1,875 for the December quarter of this year and for 2012 of US$2,000 per ounce.
Technical limitations
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