Gold likely to retest $1,920: charts

Gold or silver, which is the most compelling? Both are used as an alternative to fiat currencies and in this area attention has shifted from the U.S. dollar to the Euro.

It is the increasing strength in the U.S. dollar that is driving down the price of gold and silver. Assessment of the precious metals also swings on assessment of the U.S. Dollar index.

Our main focus is on gold, but this cannot be easily separated from the influence of related markets. The Dollar Index [.DXY 76.98 -0.05 (-0.06%) ] developed a symmetrical triangle. The breakout on the upside has an initial target near $0.785, just below the substantial resistance level near $0.795.

This reduces the probability of the U.S. dollar quickly moving above resistance and resuming a march to the next resistance level near $0.815. This suggests the strength of the dollar may be temporary and this has an impact on the raw chart analysis of the gold price.

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Tags: 2012 gold forecast, Gold analysis, Gold future prices, Gold futures, Gold investment, Gold news, Gold price, Gold price forecast, gold prices, Silver price, silver prices

Posted by VBN on Sep 22 2011. Filed under Gold. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry