Gold Continues to Make New Highs
Coupled with a big day in the U.S. stock markets, Gold today hit an all-time high, closing with a price of $929 on the February contract (GCG8). Gold bulls have been on a monster run of late, with no resistance in sight at this level.
To the downside, the nearest level of support is around the 900 level. That can act not only as a chart support level, it can also act as a numeric support since that was a benchmark number. Below that, the next strong level of support is around the 800 level, with the same effect one would find at the 900 level – the 800 number has acted as numeric support as well.
Both the 15- and 25-day moving averages have been left in the dust in of this pricing action. Although the slow stochastic indicator has declined a bit in the last week since Gold hit lows in the mid-800’s, the market has not followed suit, posting one significant increase after another.
Today's news was the decline in new home sales, but the big difference-maker this week is the Federal Reserve announcement on Wednesday.
Mike Tosaw, Director of Education