Gold Flat As Stocks Rise
The gold market is trying to take a stand following recent weakness. Thus far, the gold market has bottomed out around the $1210 level. The market does, however, appear headed towards another retest of the $1185-$1200 areas. The gold market has held this area on two occasions already in the last year or so, but may not be able to take the pressure another time around. A breach below this area could potentially ignite a new, significant leg lower in gold prices. Of importance is the fact that gold is in the midst of completing a large descending triangle. A break down out of this technical pattern could potentially see gold fall another $200 from current levels.
Gold continues to have a number of headwinds that are keeping the selling pressure on the yellow metal. The strength in the dollar index is a large driving factor for gold, and thus far it appears that the dollar has plenty of room to run. In addition, although some weakness has been seen in stocks recently, the market rallied sharply today and does not appear to want to stray too far from the 2000 level on the SP500 index.
Until sentiment sees a drastic change, the yellow metal may stay under pressure. In addition, the notion of higher interest rates also may keep selling pressure on gold. The market still may react to any potential headline risk, however, it seems that investors have become increasingly good at shrugging off any geopolitical news.
This story is provided by Sharps Pixley, for more information and content please visit: www.SharpsPixley.com
25 Sep 2014 | Categories: Gold
