Gold Technical Precious Metals (2012-01-05)

The metal has moved between 61.8% and 76.4% Fibonacci retracement levels of the last downside rally from 1640.00 to the former low of 1522.00 after achieving a four-hour closing below 1603.00 zones as seen on the provided four-hour chart. Now, we can notice the conflict between momentum sign and trend signal while gold hivers around one of the most critical correctional levels around 76.4%. Hence, we are not sure if the recently seen upside wave from 1522.00 represents a new bullish wave or it is just a corrective rally that was supported by the lack of liquidity seen during the past week's holidays. Anyway, we will watch out the price behaviors until we get more confirmations during the upcoming sessions.

The trading range for today is among the key support at 1533.00 and key resistance now at 1653.00.

The general trend over the short term basis is to the upside, targeting $ 1945.00 per ounce as far as areas of 1475.00 remain intact with weekly closing.

Previous Report

Weekly Report

Support
1607.00
1603.00
1590.00
1582.00
1575.00

Resistance
1620.00
1628.00
1635.00
1645.00
1653.00

Recommendation
Based on the charts and explanations above our opinion is, staying aside until a clearer technical setup presents itself to pinpoint the upcoming big move.