Dan Norcini: Gold hits resistance at $1720; holding gains

Gold hits resistance at $1720; holding gains

by Trader Dan
Gold has run exactly to the projected resistance level on the charts, backed off a bit, and then encountered additional buying which is keeping it well supported at the current hour.

It might be a bit early but it seems as if we might be seeing the gold market anticipating some sort of QE3 coming from the Fed sooner rather than later. The fact that it is acting as a safe haven and is shrugging off any weakness in equities and strength in the US Dollar is very telling. We’ll see if this new pattern continues to hold in gold.

If gold plows through the resistance level noted on the chart near $1720, it looks to have a fairly clear path to $1750 or so. Volume on the move higher remains pretty decent.

Downside support likes first near $1680 followed by better support at $1650.

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This entry was posted in Dan Norcini, Gold, Technical Analysis, Trader Dan's Market Views. Bookmark the permalink.

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