Meanwhile, attention will remain focused on the U.S. and Britain since we will receive more important econ data early next week in conjunction with the Q3 earnings flow. A recovery in British econ data coupled with more optimistic U.S. numbers would likely accelerate the broad-based devaluation of the Dollar and send gold higher. However, uncertainty has re-entered the marketplace, so investors should be wary of upcoming releases.
Technically speaking, gold's consolidation is building a solid base should the precious metal decide to head towards $1100/oz. Furthermore, gold continues to set higher lows and has avoided the idea of heading beneath $1050/oz and 10/16 lows. However, it seems gold will reach a breaking point in the near-future, and we will have to wait and see whether the Dollar works in favor of the precious metal. Previous October highs continue to serve as a technical barrier along with our downtrend line. As for the downside, gold has a couple uptrend lines serving as technical cushions to go along with 10/21 and 10/16 lows as well as $1050/oz. For the time being, investors should pay particularly close attention to the EUR/USD's present interaction with its highly psychological 1.50 level.
Present Price: $1057.90/oz
Resistances: $1058.75/oz, $1061.40/oz, $1065.15/oz, $1068.06/oz, $1070.66/oz
Supports: $1055.46/oz, $1051.91/oz, $1048.62/oz, $1045.32/oz, $1042.96/oz
Psychological: $1050/oz, $1075/oz, $1100/oz