Gold Technical Update

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XAU/USD Daily Chart 9:10PM EDT 8/10/2012

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

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.

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