FX.co ★ Gold moving towards new low

Gold is moving towards new lower levels in the year of 2014 as well. Recent housing data showed the US economy came back. It increases the confidence level of the Fed. It will start tampering slowly. After the tampering we need to look at the other important factor such as interest rates. We expect interest rate hikes on 2015. Investment banks like Goldman Sachs and UBS expect around 15% fall this year, which comes to $1,040 on cards. As per the data from SPDR Trust, the total gold in trust is 794.62 tonnes, below 800 tonnes.

If we go through the charts on weekly, daily and hourly basis, we can see the bear image clearly, hinted new lower levels yet to come.

Longer term - Monthly and Weekly charts

In the weekly charts, oscillators show the positive divergence. A bit pull back is possible. Weekly close above $1,290 makes more bullish on cards.

Resistance - $1,286-$1,290

Recommendation - Those who love to hold gold for couple of years can start buying on every dip from $1,100-$1,035 with sl $1,000.

Medium term - Daily charts

In the daily charts, oscillators show the positive divergence. A bit pull back possible. Gold holding above 21EMA at the level of $1,222. Close above $1,240 makes more bullish on cards.

Resistance - $1,240 $1,244 $1,268

Support - $1,211 $1,200 $1,280

Intra view - Hourly charts

In the daily charts, oscillators sign an overbought position. In Asia's session gold is trading at $1230. From last couple of days we resume it's better to sell on rallies. The same theme we remain this year as well for the targets $1,150 $1,100.

Resistance - $1,238-$1,240 $1,244

Support - $1,219 $1,211.

Recommendation- Sell at $1,245-$1,252 with sl $1,255 for the target $1,168-$1,170

From last 6 months gold holds its June's low $1180. Two times it has tested the support and succeeded to save the June's low. The last trading day of 2013, gold tested its June's low and successfully managed to close above the uneconomical level $1,200, which is a good sign for bulls in medium-term view. Some more upwards move left before it creates a new low. We can call it as a double bottom at the level of $1,180 .

A break below the level $1,180 makes more panic and creates more room for downside $1,168, $1,150, $1,100.

Final target - $1,100.