Technicals | Nov 15 2011
By Chris Shaw
Ongoing political turmoil has helped the gold price claw its way back towards US$1,800 per ounce, while technical analysts at Barclays Capital note the precious metal continues to find downside support from the physical market.
A further positive in the view of the analysts is investment funds flows for gold have also turned positive again. This is expected to be a key in leading the price higher, with the analysts forecasting a 4Q11 price of US$1,875 per ounce, rising to US$2,000 per ounce for 2012.
From a technical perspective, the break above resistance in the US$1,775 per ounce area confirmed a bullish view, the analysts now expecting a move toward US$1,840 per ounce as the final Fibonacci level.
According to the technical analysts, the daily cloud base near range lows at US$1,680 per ounce should underpin any near-term weakness. Any break above US$1,840 per ounce would be see as confirmation of further upside toward the all-time high at US$1,921 per ounce.
Medium-term the analysts remain bullish and see support at US$1,725 and US$1,680 per ounce, while resistance is currently at US$1,810 and US$1,840 per ounce.
Technical limitations
If you are reading this story through a third party distribution channel and you cannot see charts included, we apologise, but technical limitations are to blame.
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