FOREXYARD: Forex News Blog

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• Black Friday May Add Strength to Gold Over Weekend
• Gold Has Strong Support at $1365, Silver Remains above $27.00
• Silver Trading Update
• Head and Shoulders Reversal for Gold?
• Silver Hits $27.55 an Ounce
• Gold Looks To Drop towards $1,350 an Ounce

Black Friday May Add Strength to Gold Over Weekend Posted: 26 Nov 2010 06:24 AM PST Gold prices appear to be ending the week with little change since Monday. While the precious metal climbed over $30 in value by mid-week, the price had tumbled back to $1353 an ounce as of this afternoon. The trend for Gold appears to remain bullish despite this recent corrective movement. However, we should also note that the retracement experienced since Wednesday could be part of a larger cyclical downturn with take-profit targets at $1340, $1310, and $1280. If holiday shopping picks up over the weekend from Black Friday in the United States, then there is the possibility of a quick rebound in precious metals at the start of next week. If retail sales enter their holiday upswing, we could see demand for jewelry-linked commodities (Gold, Silver, and Platinum) experience a bullish spike as well. The retracement period on Gold appears to be shrinking, which means the target of $1310 may be the lowest Gold reaches before extending its bullish trend further. Traders may want to keep an eye on retail sales and consumer spending figures emerging from the US during the post-Thanksgiving/pre-Christmas shopping period. We can see on the chart below that Gold may be entering the final phase of a head-and-shoulders candlestick pattern, with a target around $1310, and perhaps even as low as $1280. Gold – Daily Chart

Gold Has Strong Support at $1365, Silver Remains above $27.00 Posted: 26 Nov 2010 12:26 AM PST Gold continued its decline in European trading today, dropping to $1365 an ounce from an overnight price of $1372.  The decline came as the dollar strengthened further versus the euro, as the ERU/USD pair reached a two week low of 1.3260. The drop came as concerns intensified that Ireland's debt problems will widen to Portugal and Spain. Though Gold prices still receive support from the euro-zone debt crisis as investors turn to the precious metal as an alternative investment, the strong dollar reduces the appeal of the metal as it makes it more expansive. It seems that Gold has a strong support at $1365 an ounce, as the euro-zone debt concerns persist and the tension between North and South Korea remain in the background. Trading returned to normal market conditions today as U.S banks open after yesterday's holiday, however, the lack of major news events will likely keep the markets subdued ahead of the weekend. Gold will likely remain between $1365 and $1372 for the remainder of the day.  Silver continues to follow Gold's trading pattern, also seeing a decline in today's trading, albeit it still remained within its recent range. Silver for immediate delivery declined to $27.25 an ounce, after briefly dropping to a low of 27.02. Silver, however, is still up overall this week. The price reached $29.36 an ounce on Nov. 9, the highest level since 1980.

Silver Trading Update Posted: 25 Nov 2010 11:38 PM PST Typical of a sustained movement, similar to what silver prices have been experiencing, there eventually arrives a decision point. Concerning the price of silver, that point may have arrived. We've seen silver prices climbing steadily these past few weeks as concerns over the Euro-Zone's sovereign debt crisis and Ireland default have pushed many investors out of currency safe-havens and into commodities such as silver. What we see now in the charts is silver prices hitting a potential breaking point. The $29.30 price level appears to represent a strong resistance line for silver prices. It is only natural then that our technical indicators, displayed below, are showing an impending downward correction. But is the price of silver really ready to halt its upward mobility? • The chart below is the silver weekly chart by ForexYard. • The indicators used are the MACD, Stochastic (slow), and the Fibonacci Retracement lines were also drawn. • Point 1: Here we see that the price has reached a significant resistance point, represented by the 100% Fibonacci Retracement line. • Point 2: The Relative Strength Index (RSI) indicates that the price of this cross currently floats in the overbought territory, signaling downward pressure. • Point 3: There is an impending bearish cross on the MACD which highlight a downward movement is going to occur in the near future. Silver Weekly Chart

Head and Shoulders Reversal for Gold? Posted: 25 Nov 2010 07:42 PM PST A bearish chart pattern signals a potential drop in the price of gold. The head and shoulders top can be identified with the left shoulder taking shape on 10/14, the head is located at 11/9, and the right shoulder at 11/23. A break below the rising neck line would signal a completion of the reversal pattern with a potential move of $100 from the breach below the neck line. Today's economic events: CHF – KOF Economic Barometer – 10:30 GMT Expectations: 2.09. Previous: 2.17. The Swiss franc has slipped against the dollar as the USD/CHF is trading back above 1.00. Further gains may be booked should the KOF report come in below expectations. Traders should be targeting the 50% retracement from the August to October move at 1.0040, followed by the 61.8% retracement at 1.0175. Support for the EUR/USD comes in at 1.3080, the 50% retracement level for the June to September move. Resistance is found at 1.3360, the 61.8% retracement for the June to September move.

Silver Hits $27.55 an Ounce Posted: 25 Nov 2010 10:54 AM PST Silver was little changed on Thursday, lacking strong impetus due to the U.S. Thanksgiving holiday but backed up by some safe-haven buying amid Europe’s debt crisis and heightened tensions between North and South Korea. However, there is much technical data that supports a bearish move for today as described below. • The technical indicators used are the Slow Stochastic and MACD. • Point 1: The Slow Stochastic shows a fresh bearish cross which may indicate an impending bearish movement. • Point 2: There are multiple bearish crosses on the Stochastic (slow) which highlight an impending downward correction. • The volatile upward movement which occurred prior to this downward correction has generated these indicators, and there appears to be room for this correction to continue. Silver Daily Chart

Gold Looks To Drop towards $1,350 an Ounce Posted: 25 Nov 2010 09:45 AM PST For the past few weeks gold is seeing quite unusual and remarkable trading. It was only two weeks ago that gold reached an all-time nominal high of $1,424 an ounce. This was soon corrected and gold prices fell to as low as $1,329 an ounce. By now gold resumed its uptrend, and is currently trading near $1,375 an ounce. However, there are several technical indications that gold is about to face yet another bearish correction. • The chart below is spot gold 4-hour chart by ForexYard. • It can be seen that since November 16 gold prices are gradually advancing, until a recent high of $1,382 an ounce. • However, gold has failed to breach through the $1,385 level, and sees rather flat trading ever since. • The RSI has recently reached above the 70-line, in what's known as the "Over-Bought" section. Moreover, it is now pointing back down, indicating that a bearish correction is impending. • Lately the MACD has completed a bearish cross, also suggesting that a downward move is likely to take place. • Nevertheless, the Slow Stochastic continues to point up. A bearish cross of this oscillator might validate the bearish move. • The next support levels are located at $1,367, $1,356 and $1,355. • The next resistant levels are found at $1,380, $1,385 and $1,390.

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