Gold price technicals - US$1154 is the level to watch

Angela Mangan

QMG Pty Ltd

In last week's Wire, in the commodities area, the gold price was flagged as the (only) one that had the potential to generate a technical buy signal. Select gold stocks had already generated technical buy signals in a cluster in mid-September, which was a positive momentum indicator for the sector outlook. It has been highlighted in previous wires that stock technicals often lead the related commodity price, which is the current situation with the gold sector, given the stock buy signals were generated before the current rally in the gold price commenced. This has resulted in substantial gains being made over recent trading sessions from these earlier gold stock buy signals (all of which have now reached minimum upside targets). QMG clients were alerted last week that the spot gold price has the potential to generate a technical buy signal - a close above US$1154 is required, which if this occurs, would target a rally to US$1205.


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Technical Analyst
QMG Pty Ltd

Angela has over 30 years experience in the technical analysis field. She provides technical analysis coverage of major Australian and global stocks / key markets, including provision of a bespoke technical service to wholesale clients.

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