FX.co ★ GOLD - Bullish Outlook, Juanary 26, 2011 (Daily Strategy)

GOLD

The ounce of gold appreciated strongly over $60 yesterday, reaching the maximum of 1,719 during the European session, this increase happened as the Federal Reserve Committee acted in accord to its commitment to keep interest rates at levels exceptionally low until the end of 2014.
The price of gold could undergo some corrections, maybe the American session close can be interpreted as profit-taking after record intraday trade with huge profits. However, in the medium term gold is expected to continue its uptrend.
At the technical level we can see that gold has broken its long-term downtrend, which began in September 2011, and now is in a short-term uptrend. As for the Pivot levels, gold passed through the third weekly resistance (R_3), making corrections and retracing to continue its way up to 1,790 dollars per ounce.
Momentum indicators and Range show signs of a possible downward correction.