My Gold Analysis comment January 11, 2014

Index rebalancing may be accounting for some of the upward pressure on Gold at this time. 

 The GSCI Index and UBS Commodity Index are resetting asset weightings and funds which follow these indices therefore have to rebalance as well.

Some people regard this as causing Gold to test 1,250.00 in the coming week.

The weak jobs data has given some impetus to Gold, there are a few more reports such as personal consumption expenses and the CPI, which if soft, will work to support Gold in a move higher.

The fear of rising interest rates has contributed to the decline in Gold, one mitigating factor may be the health of US Equity markets and the future policies of the Federal Reserve regarding the 'taper'.

We certainly can not be sure that Gold has bottomed, many experts see a price of $1,100.00 before trending much higher.

Update, January 26, 2016;

Here is a chart from today showing that Gold is just starting to move off the bottom, lower still than when this post was originally written.

How many times did the bulls promise that price would rapidly rise to the heights before it finally moved, two years later?

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My Gold Analysis January 10, 2014

On a Friday which was NFP day there were some good scalp trades available and I have attached two charts on which the entries are pretty straight forward. I use the alligator and re enter at the fractals as the move progresses, a simple and conservative and also profitable setup.

Analysis

Gold got a little shot in the arm from the NFP today and, as you can see, price is well above the Ichimoku Cloud on the 240 minute chart below.

This next chart has the Camarilla indicator and price is well above the last target and now has formed a double top. This could be interesting as the markets open next week, will price move ahead or back away from the resistance.

On the chart below we can see that price is approaching a Fibonacci line, the 38.2 and there may be a difficult time to pass this area in future

Here we have the Daily Chart and, as you can see, Price is below the Ichimoku Cloud which, at this time, appears to provide significant resistance to an upward move. So far as we look at these charts in today's post, there is not going to be an easy upward move for a while.

This last chart, I keep only for the purpose of detecting divergences, to see if there is possibility showing of a change in trend. Today, on this 4 hour chart there appears to be no indication of divergence.