Gold resistance for Wednesday is 1658-1668
Gold has bounced around in a narrow range between 1653 and 1645 in quiet trading today, with the 1653 level serving as resistance on 3 separate occasions.
It is interesting to note the lack of buying interest at these levels, which suggests further downside is coming. This of course fits in with our thinking with regard to the failure of the triangle consolidation pattern, though the lack of any recovery or attempt to regain the triangle is worrying for the bulls.
Again, the action in oil and the dollar should be mildly supportive to gold today, though at the moment these two markets appear to be having almost no effect on the gold price, a situation that will ultimately correct itself.
Whilst the "triple top" at 1653 suggests that we may not now reach our target of 1656, we will look to re-open our short position on a break of yesterday's low of 1639, or on a rally to 1656-1662 as per our original plan.
Gold and Silver bullion prices rebounded on Tuesday, with the price to invest in Gold inching higher 0.20 percent or $3.30 to close at $1,651.20 an ounce, after bouncing off of its lows reached on Monday when the dollar lost traction following the pledge by the G7, the United States, Britain, France, Germany, Japan, Canada and Italy, to only allow exchange rates to be determined by the market, not to be arbitrarily devalued. The price to invest in Silver rose 0.52 percent or $0.16 to close at $31.07 an ounce, while the Gold/Silver ratio slipped to 53.14 as Silver outperformed Gold.
Senate Minority Leader Mitch McConnell said on Tuesday that the "sequester," the $120 billion across-the-board automatic spending cuts, will be allowed to take effect on March 1, as scheduled. Senate Minority Leader McConnell told reporters that he did not foresee a last-minute deal that would avert the sequester, adding, "Read my lips: I'm not interested in an 11th-hour negotiation."
McConnell continued, "It's pretty clear to me, the sequester is going to go into effect." In the meantime, Defense Department officials are warning lawmakers that the military cuts in the sequester will erode the nation's ability to wage combat, slash ship and aircraft maintenance, and force around 800,000 of the civilian workforce to take furloughs of nearly a month each.
Meanwhile, at a meeting of the Senate Budget Committee on Tuesday, Doug Elmendorf, director of the Congressional Budget Office (CBO), told lawmakers that a delay in the sequester through Dec. 31, would boost U.S. gross domestic product (GDP) by about 0.6 percentage points, and would allow the creation of an extra 750,000 jobs, this year. It was just a week ago that the CBO forecast that GDP growth would contract to about 1.4 percent by the final quarter of 2013, while the unemployment rate would tick higher, if the cuts are allowed to kick in as Congress initially planned.
The automatic spending cuts were designed to be so extreme that Congress would be forced to come together in compromise to prevent their implementation.
YOU SHOULD NOT TAKE ANY MATERIAL posted on this BLOG AS RECOMMENDATIONS
TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED.
Do your own due diligence.
No one knows tomorrow's price or circumstance.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
King Regards
