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GCZ3- Gold Pops As The Dollar Gets Whacked And Chinese Rating Agency Dagong Downgrade's The United States

Tuesday October 22, 2013 08:19

Last night the Senate passed a bill to fund the government and lift the debt limit and shortly after midnight Gold rallied through resistance at 1291.5 and hit a high of 1320.5 as shorts covered positions on a failure to follow through to the downside in the last 24 hours. Hours before the deal was passed, Gold had tested a low of 1273.7. Yesterday Gold tested a low of 1268.6 before rallying more than $15 to settle at 1282.3. A major mover aside from Gold has been the US Dollar which had been a safe haven for cash on the sidelines. After trading through resistance at 80.80 in yesterday's session the Dollar has been below 80 this session and a weaker Dollar makes commodities priced in Dollars more valuable. The major levels that traders must watch today are a close back above 1323.5 will likely signal a major bull leg in Gold. A close back below the psychological 1300 level will be a major blow for the bulls, but a close below 1291.5 will negate this early activity.

Pivot -1304.1
Resistance - 1310-1313.5*, 1323.5***, 1329.8***, 1341.5**, 1345.9*, 1352***

Support - 1300**, 1296.8*, 1291.5***, 1285.9*, 1278.6**, 1271.8***

By iiTrader

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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