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Technical Analysis Gold for November 20, 2015

By:
David Becker
Published: Nov 20, 2015, 04:32 UTC

Gold prices moved higher on Thursday, but was unable to close above resistance near the 10-day moving average at 1,083.  The dollar eased on Thursday

Technical Analysis Gold for November 20, 2015

Gold prices moved higher on Thursday, but was unable to close above resistance near the 10-day moving average at 1,083.  The dollar eased on Thursday giving the yellow metal a much needed respite after breaking down below the July lows at 1,080. With yield differentials continuing to favor holding the dollar over gold, a short squeeze in the yellow metal is likely to be short lived.

Support on gold prices is seen near the November lows at 1,069.  Additional resistance above the 10-day moving average is seen near the September lows at 1,100.  Momentum on gold prices remains negative with the MACD (moving average convergence divergence) index printing in the red with a downward sloping trajectory.  The RSI (relative strength index) moved higher on Thursday, along with price action, reflecting accelerating positive momentum. The move from oversold territory to the neutral territory could foreshadow a further rebound for the yellow metal.

Technical Analysis Gold for November 20, 2015
Technical Analysis Gold for November 20, 2015

About the Author

David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.

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