Spot Gold (XAUUSD) : Expect a big move today
February 11, 2011 Leave a comment
Looks like spot gold could benefit from major chaos in Egypt. Having tested the 1365-1368 resistance band multiple times this week, the chances are gold will be quiet for a while longer, then explode – one way or the other. A breakout above 1368 on bad news from the middle east could see a spike to 1380 easily, possibly to the trend changing level of 1386. A failure to pass 1368 today will however open up the possibility of a swift pullback. There are no half measures in spot gold movements, so a correction to 1352 would not surprise us in the slightest.
We are pretty sure there will be a big move in gold today though, so if you’re long or short local gold futures, consider holding cash over the weekend because the action will occur after TFEX closes