Gold: The commodity continues to challenge higher prices, trading to a new high of $1,111.05 on Monday. This is coming on the back of a strong rally the past week. With its medium- and longer-term bullish structures intact, gold should head higher, toward its psychological level at $1,150 and then $1,200, in the medium term.
While we are conscious of pullbacks and consolidation along the way, the commodity continues to retain its bullish outlook, suggesting that such pullbacks are corrective of its major uptrend.
If the $1,200 level is toppled, focus will then shift to the $1,250 level, followed by $1,300. The last two levels are within our three-month forecast for gold.
On any correction from its present price levels, the commodity should target the $1,093.97 level, where its Nov. 5 low is located, with a turn below there pushing it further toward its stronger support, at the $1,070.37 level, its Oct. 14 high. This level is expected to reverse roles and provide support, thereby pushing gold back up again.
Further down, support is sited at the $1,059.75 level, its Oct. 26 high. On the whole, gold retains its overall bullish structure and looks to continue its longer-term uptrend toward the $1,150 level, and then $1,200 in the days and weeks ahead.
Mohammed Isah is a technical strategist and head of research at FXTechstrategy.com, a technical-research Web site. He has been trading and analyzing the foreign exchange market for the past seven years. He formerly traded stocks before crossing over to the forex market, where he worked for FXInstructor LLC as a technical analyst and head of research before joining FXTechstrategy.com. He has written extensively on the forex market and technical analysis and his articles have been featured in The Technical Analyst Magazine, The Forex Journal Magazine, The International Business Times and FXstreet.com. At FXTechstrategy.com, he writes daily, weekly and long-term technical commentaries on currencies and commodities, which are offered to its clients. He also produces
for his subscribers. He provides full coverage of the forex market with specific focus on G10 currencies as well as the commodities markets, with focus on five key commodities.