Make Kitco Your Homepage
News Bites

Goldman Sachs Sees Gold At Major Technical Crossroads

(Kitco News) - Major U.S. investment bank Goldman Sachs sees the gold market at major technical crossroads, noting that this past year the market has been in a “corrective process” since hitting the multi-year lows in December.

In a technical analysis report published Tuesday, analysts at the bank said that gold needs to recover the $1,303 level to restart its recovery process.

In the meantime, investors and traders need to pay attention to the $1,250 level as a break below that could lead to a test of the next support at $1,211 an ounce. December Comex gold futures are seeing some modest selling pressure Wednesday with prices last trading at $1,254.6, down 0.10% on the day.

“It's since seen the A and B legs of an incomplete ABC. Again, it's common for B waves to be more contracted/complex. As such, the market needs to break meaningfully past 1,303 (early-September low) to suggest potential to have started its final C wave advance,” the analysts said in their report. “The next downside level to watch is 38.2% retrace at 1,250. A break lower will open up risks to 50% retrace at ~1,211-1,200.”

The bank’s technical analysis comes less than a week after the bank said that a drop below $1,250 would be a “strategic buying opportunity” because of growing risks to the global economy.

Investment Bank Goldman Sachs sees gold at technical crossroads and needs to push above $1,300

 

By Neils Christensen of Kitco News; nchristensen@kitco.com

 

 

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 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.
kitco news