On the heels of gold surging near the $2,100 level at the end of last week, this will cause the gold market to catch fire if we see this today.
As Good as Gold
March 4 (King World News) – From Citi’s Naveen Nair: Gold shot higher on Friday and is testing the December 28 high of $2089.
Why it matters: Price has not closed over this level, with just an intraday break on Dec 4 that was quickly pared. That makes resistance at $2089 reasonably strong.
Gold Trying To Overcome $2,089 (RED LINE) Resistance
IF we see a close above however, it would suggest a break higher towards $2135-2143 (ATH, ascending resistance).
If Gold Closes Above $2,089, Next Target $2,143 (PURPLE LINE)
This silver explorer recently did a huge transaction with a $4.5 billion market cap producer CLICK HERE OR ON THE IMAGE BELOW TO LEARN MORE.
Downside watch: Daily slow stochastics has moved into overbought territory. We think any cross lower should be closely watched, especially since the last 3 crossovers have seen ~3% moves lower. To the downside, the key support region will be 1969-1984 (200d MA, 55w MA, Dec 2023 low, Feb 14 low).
Technical indicators:
- Price has not closed above the 2089 level, suggesting strong resistance
- Next level of resistance at 2135-2137 (ATH, ascending resistance).
- Cross below overbought territory has suggested a ~3% drop in the past 3 instances.
King World News note: In overseas trading gold has already surged to $2,095. If the trend higher continues today that will open up the door for gold to move to the $2,143 level Naveen noted in the first chart. This would also trigger the silver and mining share markets to trade much higher as well. Let’s see how we close today.
To listen to Alasdair Macleod discuss the huge trading on Friday that lifted the gold price close to the $2,100 level CLICK HERE OR ON THE IMAGE BELOW.
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