October 28, 2013 – Gold (daily chart) has maintained its ground during a potential recovery that has been in place for the past two weeks since its mid-October 1251 low. The precious metal has risen sharply in value during these two weeks, forming a steep bullish run that has brought price off its multi-year low of 1180 that was hit in late June as well as off its noted three-month low established in mid-October. In the process of the current advance, gold has broken out above its 50-day moving average but has not yet reached its 200-day, which is currently around the 1386 level. Price is also approaching the 61.8% Fibonacci retracement of the recent plunge from the August 1433 high down to the noted October 1251 low. Further momentum on the current recovery attempt has a clear upside target around the 1425 resistance level, with key support currently residing around the 1300 price region.
James Chen, CMT
Chief Technical Strategist
City Index Group
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