Gold Technical Update

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XAU/USD Daily Chart 9:10PM EDT 8/10/2012
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Gold pushed through some resistance factors around 1650 after the FOMC meeting minutes showed more urgent consideration of QE. The daily chart shows a break above a declining trendline. This goes back to the record high at 1920.75from 9/6/2011. This declining trendline is seen in the weekly chart as part of a descending triangle.

A key level to monitor for a follow-through to the current breakout is the 1700 psychological handle, and a pivot near 1703.

In the weekly chart, we see that the long-term bullish momentum has been preserved as the RSI reading held above 40. We should expect some near-term resistance when the RSI approaches 60. As far as price, if the market does extend above the1700-1703 pivot, the next key pivot is around 1790.

XAU/USD Weekly Chart 9:25AM EDT 8/23/2012
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Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.