the daily chartist

GOLD XAU/USD recap for 12.10.2015

published 4 years ago
Gold Daily

Revisiting gold for its progress for the 12th of October. Price held strong and climbed towards 1170.321 at the upper level of the sell zone and a correction will occur as we see today, currently price is at 1155.001 and if held, price may find some support there, if not price may move down to 1143.445. One might say that gold is turning out pretty well to bet on as technicals are turning higher as the long-term target still remain $1200 and a close above it. US dollar weakness continues to be a key factor and not only for gold. The dovish sentiment of the central banks also play a major roll, actual better sentiment from the EMs and production cuts - factors and catalysts pushing gold higher for now. 

 Glencore is in the spotlights this month. Shares are having a hard time and a roller coaster joy ride as shares fell more than 30% on September 28 but climbed nearly 110% at the highs on last Friday. They just shuttered production to cut costs. Glencore is not in the league of the mass miners of gold but they mined nearly 1 million ounces of gold last year. But more importantly they shuttered mining in some other metals and the market reads that as a sign that other cash-strapped companies may soon do the same. 

 And as these moves slashes the corporate world in the gold business, gold enjoys the demand.