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Trading news
4 Apr 2013
Forex Flash: Gold could fall sharply another $200 - RBS
FXstreet.com (Barcelona) - The fall in gold, according to Greg Gibbs, FX strategist at RBS, appears to strengthen the case for a developing mid-term bearish trend, which had its onset October last year.
Greg notes: "Gold is around its lows in around mid-2012, late-2011, and a peak in April-2011 just ahead of the 2011 phase of the Euro crisis. A break below this zone will signal to technical analysts that it is in the process of unwinding a long rising trend that began over a decade ago, and perhaps could fall sharply, initially by around $200 before encountering significant support. Such a move, were it to occur, is unlikely without a broad significant gain in the USD against other currencies.
Greg notes: "Gold is around its lows in around mid-2012, late-2011, and a peak in April-2011 just ahead of the 2011 phase of the Euro crisis. A break below this zone will signal to technical analysts that it is in the process of unwinding a long rising trend that began over a decade ago, and perhaps could fall sharply, initially by around $200 before encountering significant support. Such a move, were it to occur, is unlikely without a broad significant gain in the USD against other currencies.