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.
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***