FX.co ★ Gold analysis for December 17, 2013

Gold prices seem to remain with no clear direction and our two possible wave scenarios both remain valid. It looks like the market is waiting for the FED and what will be announced during December 17-18 regarding the possibility of tapering the QE program.

From the Elliott wave perspective, wave structure will become clearer if we see a break out above 1,268 or if support at 1,210 fails. Short term resistance is found at 1,253 where the 61,8% Fibonacci retracement of the decline from 1,268 is. Short term support is found at 1,226.

The daily chart has given us no new clue today. Prices remain below the broken neckline resistance and the negative slope of our MA supports the view that trend remains down and so it is more probable to see 1,180-1,140 than a move towards 1,300. Concluding, gold is trading within a neutral range. A break above 1,252 will increase the chances of prices testing 1,300, while if support at 1,220-1,210 fails, we will see 1,180-1,140.