Gold finds support at $1800/ounce

Spot gold found short-term support at $1800/ounce. A rally to $1900 from this point would form a bullish ascending triangle, suggesting an upward breakout and offering a target of $2100*. Failure of support, however, would penetrate the rising (secondary) trendline and suggest a correction to $1500.

Spot Gold

* Target calculation: 1900 + ( 1900 – 1700 ) = 2100

Gold Bugs ($HUI) and Gold Miners ($GDX) Indexes both broke through resistance to signal a fresh primary advance. With a target of 700 for $HUI, the breakout favors continuation of the current advance in spot prices.

Amex Gold Bugs Index $HUI

* Target calculation: 600 + ( 600 – 500 ) = 700

2 Replies to “Gold finds support at $1800/ounce”

  1. gidday Colin,& Robin, im running daily on xau/usd with slow stoch ,, looks to me like chart has formed a double top with divergence on stoch above 90 where I set top line to filter spikes .Im looking at support @ $1769, approx .. just IMO ,, I dont hold position in xau/usd cheer QED

    1. Hi James, We are largely in Ben’s hands. Further QE and gold will run through $2000 in a flash. No QE and we could see profit-taking at $2000/ounce. Regards, Colin

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