Short term
Trade view / 04 October 2016 at 8:39 GMT

Gold returns to key support but strong USD threatens

Director / PIA-First Limited
United Kingdom
Instrument: XAUUSD
Price target:
Market price:
The combination of a slightly stronger dollar tone, higher US bond yields and solid risk appetite kept precious metals prices on the defensive on Monday. Silver dipped and has broken support at $19.00 per ounce while gold sank further towards key support near $1,300.

Whilst, our longer term (Bullish flag) and intra-day trade (Key support) ideas continue with a dip buying at approach, if support breaks then there would be a short term selling opportunity.

Gold prices have been in a corrective channel since early July, with levels above $1,300/oz acting as solid support. We expect a fast move if this support breaks but also expect downside to be limited by an underlying continued safe haven bid and the bottom of the corrective channel.

Fibonacci retracement levels will act as targets for a break. We expect any extended move to stall in front of $1,250.

Management and risk description
Once 1st target is reached take partial profits and reset shorts on a reaction back to $1,300. A further drive lower show target $1,265-70 before a final swing to $1,252. 


Entry: Sell a break of $1,300/oz

Stop: A move back above $1,325

Target: Early target of $1,287, $1,267 & $1,252

Time horizon: 2-4 weeks

Corrective channel & fibonacci retracements

Source: Saxo Bank. Create your own charts with Saxo Trader click here to learn more

Bullish flag on long term chart
Source: SAXO Bank

— Edited by Clemens Bomsdorf

Non-independent investment research disclaimer applies. Read more
Steve O'Hare - First 4 Trading Steve O'Hare - First 4 Trading
First target reached for partial profit take. Stop can be lower to $1315 on any balances
Bullionaire Bullionaire
Sigh... didnt take it.
bancodemon bancodemon
took profit yesterday.. thanks Steve...are we going to see more moves to the downside going forward?
bancodemon bancodemon
Hello Steve, final target reached? Thanks :).....whats next ..please help... Thanks
Steve O'Hare - First 4 Trading Steve O'Hare - First 4 Trading
Monitoring reaction at these levels but no real sign of this move slowing yet


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