FX.co ★ Technical analysis of Gold for October 16, 2014

The weak US data gave strength to the yellow metal and dragged the US dollar. The metal was well supported by the IMF concerns over the slowing German economy and the cooling of the bets that the Fed can raise interest rates in the near term. The metal came out of the minor range bound, adding longs by sustaining above $1,242. In yesterday's session the metal made a high at $1,249.30, but faced strong resistance at 50Dsma $1,252. As of now, today the metal took support at $1,238 levels. The trading pattern is shifted to $1,238-$1,252 from $1,200-$1,242. In case, if the metal closes above $1,252 on a daily basis, then only it can rally up to $1,264, $1,274,$1,278 and $1,285 levels. The short- and medium-term trend still looks bearish. On the down side, in case if the metal breaks below $1,238, it has support at $1,232 and $1,217 levels. Risky trades can start selling below $1,238 and safe traders, below $1,232.

For an intraday view, the prices are trading above 12ema and 35DEMA. In Asia's session the metal managed to trade above $1,242. If the metal sustains above $1,245, it can go to $1,249, $1,254 and $1,257 levels. On the down side, it has support at $1,236, below this, $1,232, $1,228 and $1,221.70 will act as support levels. We can see weakness below $1,236 and selling pressure, below $1,228 levels.

Trade- Fresh buy at $1,245.

Risky traders use sl $1,245 to start selling, cmp $1,243, target: $1,240, $1,238, $1,236.