6 Jan 2016
Gold: Possible double bottom - BBH
FXStreet (Córdoba) - According to analysts from Brown Brother Harriman, gold has risen after bottoming in December, forming a possible double bottom that could send the price back above $1100.
Key Quotes:
“With equity markets tumbling, escalating tensions between a Saudi-led Sunni bloc against Iran, ongoing hostilities in Syria, North Korea testing what it claims to be a hydrogen bomb, the once precious yellow metal is looking perky”.
“A six-year low was recorded in early December (on the same day the euro fell to $1.0525 when the ECB met). That low (~$1046.45) was retested a fortnight later (~$1047.75). Between the two lows, gold reached almost $1089. If this is a double bottom, the minimum measuring objective is near $1132.”
“If gold is carving out a bottom, then a retracement of the drop since the middle of October should be anticipated. The 38.2% retracement is found near $1101, which is near the mid-November high. The 50% retracement is $1119. The 61.8% retracement dovetails with the double bottom objective. It is found near $1136.”
Key Quotes:
“With equity markets tumbling, escalating tensions between a Saudi-led Sunni bloc against Iran, ongoing hostilities in Syria, North Korea testing what it claims to be a hydrogen bomb, the once precious yellow metal is looking perky”.
“A six-year low was recorded in early December (on the same day the euro fell to $1.0525 when the ECB met). That low (~$1046.45) was retested a fortnight later (~$1047.75). Between the two lows, gold reached almost $1089. If this is a double bottom, the minimum measuring objective is near $1132.”
“If gold is carving out a bottom, then a retracement of the drop since the middle of October should be anticipated. The 38.2% retracement is found near $1101, which is near the mid-November high. The 50% retracement is $1119. The 61.8% retracement dovetails with the double bottom objective. It is found near $1136.”