| As global investors dump stocks and risky emerging market assets, the safe haven U.S. dollar and gold prices have rallied. The daily gold chart could soon confirm a bullish technical signal that might encourage more speculative buying. If the price of gold - denominated in U.S. dollars - closes Monday above $1,173.04/oz, it will be inside the daily Bollinger uptrend channel and also above the Ichimoku Cloud resistance zone.
These two bullish signals could spur the pair toward the ceiling of the uptrend channel - currently at $1,209.15/oz. But if China’s central bank loosens monetary policy this week - as some are expecting - risk appetite could be revived and gold would then retreat. Gold is now trading at $1,158.10/oz from its Friday close of $1,160.65/oz...............................................Full Article: Source
|