Gold Technical Update
XAU/USD 1H Chart , 6:48AM EDT 6/6/2012
Gold popped up from a recent short-term flag pattern. The demand in gold has been lifted recently due heightened expectation that the Fed and other central banks are considering monetary stimulus. These operations essentially increase the money supply while the supply of gold stays steady. Therefore the value of gold therefore rises.
The next resistance is near 1666.50, which is around the 'central pivot of the range. If the market pushes above that and pushes the daily RSI reading above 70, we are likely developing momentum towards the upper part of the range near 1800.
XAU/USD Daily Chart , 6:52AM EDT 6/6/2012
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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