Technicals - Gold - US$1290 is the key level to watch

Angela Mangan

QMG Pty Ltd

SPOT GOLD PRICE (US$1278)  -  a New York close above US$1290 if it occurs would target a rally to US$1340.  The spot gold price originally generated a technical sell signal at US$1321 on 25/8/16. The gold price subsequently generated a re-entry technical buy signal at US$1216 on 2/2/17.  The minimum nominated upside technical price target located at US$1288 was reached on 13/4/17 as detailed in a previous Wire (VIEW LINK). The key resistance level to watch is now located at US$1290 - a New York close above this level if it occurs would simultaneously break major long-term resistance that originated in September 2011  (see chart below) and also generate upside technical breaks on medium and short-term charts. The upside technical price target in that scenario would be located at US$1340.  It is also worth noting that in mid-May a cluster of gold stock technical buy signals was generated. Situations where key stocks within a sector generate buy signals in a cluster or in rapid succession is a central feature of the technical model in identifying sector themes.  Accordingly, the gold sector had been flagged and remains a positive technical sector theme.


1 stock mentioned

Angela Mangan
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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