Gold Discussion

I second that, Excellent trade Baddison

The XAU/USD broke higher instead of bouncing to 600USD support area, right now we touch the upper band of the trading range, made a high of 634.77. And we have little chance of a bounce now I think at least in the immediate future, because the strong bull and RSI still signaling more gains.

Instead of reacting to mid-band, XAU/USD rallied past 630USD mark. and plenty of momentum to push the pair more forward.

Here is a view of the Daily and 4-Hours charts.

The bull signal on daily remain intact, favoured by the fast WMA still above slow SMA, RSI 66, Stochastic has plenty of room and prices are actually trading at the upper bollinger band.

There is also a fresh bull signal on 4-hours chart ahead of these sharp gains.

Lets see if we can get a bounce from here, or 640USD first.

<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o>Hey guys,</o>
<o></o>
<o>Over the last two days, gold metal and gold stocks have rallied strongly because of a pullback in the US Dollar. Also, gold metal and gold stocks were strongly oversold, therefore it's only natural to expect an oversold bounce, though the strengh of the rally has surprised me. it will be interesting to see what the new commercial net short number (Friday.) Unless this number has dropped, then I still think this oversold rally is dead. <o></o>

If the Dollar continues to fall and makes new lows, then gold will continue to rally <o></o>

<o> </o>

642 on the upside<o></o>

<o> </o>

625 on the down<o></o>

</o>

It was indeed reacting to oversold conditions, but we are not overbought too.

The candle is bearish today, but bullish stance remains. Let's see what happens tomorrow before acting.

I can see very strong momentum in gold & silver...Although I am long gold futures and long some call options on gold stocks, I got surprised by the momentum...I was also expecting a pullback towards the $600 mark for the Dec 06 future contract which means slightly below the $600 for the spot price, but given this strength, I don't think we will reach those levels...


Thanks,

Nader

Indeed, technically it had to bounce to the 600-605usd sup, but it only bounced a few. Looks like dip buyers are even closer than 600usd, @620usd.

The dollar slide which may extend against most currencies and metals, perhaps we are touch ahead of 650USD as target that can make Gold bulls happy!

Trend Overview for XAU/USD 13 Nov, 06

4-hours trend => neutral
daily trend => bullish
weekly trend => bullish

Scope is still for more gains in the days and weeks ahead, perhaps towards 650USD. While pullbacks can stall beneath 620/610USD as dip buyers emerge.

gold this week for me- cautiously bullish stance
consolidation above 630 = strong upward move

We have PPI and CPI and other important reports this week. More inflation and weaker dollar will mean a higher gold-price. So if someone already knows the outcomes of PPI, CPI, etc, he can also more or less predict the direction of gold.

Daily chart now looks a bit neutral between buyers and sellers. While the 4-hour chart is slightly bearish. So today buyers need to take prices higher towards 630USD to avoid a deeper correction.

At this stage, it's not clear bull or bear yet. Although very slight bearish momentum on 4hour

I agree with you..The failure to continue the rally established yesterday created a bearish tone over the market & shall spark profit taking...If the market failed to rally during the next 2 sessions to new highs, I think we shall be seeing a deeper correction...


Thanks,

Nader

Prices edged lower reaching 618.90, and now it seems like a short term move would be a bearish trend start. Would wait candle close to confirm.

looking like another run to 630. not sure if it'll have the legs to clear it today, but promising that it keeps holding 620

Gold Spot looks to have topping behavior with a support shelf of $614 to $615 area. How do you gold traders feel about selling a break of that area?

Hi there,

I have a question: Do you know a broker where I can trade XAU/USD like a normal pair? I've noticed this pair on Oanda but couldn't trade it.

Cheers

For me the level I'll sell at is 612$. Just to confirm the break. I'd be hoping to buy back around 600$ level. Hope this helps.

You can trade gold on OandA. Contact their live help so they can help you work it out.

Since the dollar was falling like crazy this a.m. and gold still had not moved much, I bought gold on a short term divergence play and it worked out nicely. I took profit at 632.80

Some tech

If the reports this week disappoint, the dollar will drop and the goldprice will rise. And if your green trendchannel is good, it cannot fall very much, even with good reports.
I am long, but I have been long in gold the last 2 years.