Gold Has Good Long Term Support From Ichimoku Technicals

Today's AM fix was USD 1,573.00, EUR 1,300.54, and GBP 1,015.23 per ounce.

Yesterday’s AM fix was USD 1,571.50, EUR 1,298.12 and GBP 1,011.91 per ounce.

Gold fell $6.70 or 0.42% in New York yesterday and closed at $1,577.20/oz. Gold traded sideways in a very tight range (1,572.20 - 1,578.27/oz) in Asia remains in this range after the open in Europe.

Cross Currency Table

Gold fundamentals are strengthened as the Eurozone’s debt crisis deepens.   Moody’s Credit rating agency downgraded its outlook on the Netherlands, Germany and Luxembourg to negative.  

Market watchers see this as the initial step in cutting Europe’s top 3 rated economies of their AAA credit rating.

The downgrade was due to Greece’s increased chances of exiting the financial block and increased risk from Spain and Italy on the single currency.  

Today the troika meet in Athens to review how Greece is meeting its strict austerity commitments to their creditors.

Contagion remains likely given the root cause of the crisis has not been tackled.

Gold is currently testing a monthly support level on the Ichimoku Kinko Hyo chart. 

Ichimoku builds on candlestick charting to improve the accuracy of forecast price moves.

Popular in Japan, Ichimoku is gaining traction in the west and many proponents, including Bloomberg, due to its charting accuracy.

Bloomberg functions show that the last three times this happened, the price rallied from the support level by 127%, 83% percent and 141%. 

Ichimoku, which means "one look", is an analytical tool that uses price medians to gauge momentum and identify levels of support and resistance at a glance. 

Gold Monthly $/oz July 2005 – Present – (Bloomberg)
 
The General Overview Chart (GOC) displays the Ichimoku Kinko Hyo equilibrium analysis that was developed by Goichi Hosoda, and is commonly referred to as an Ichimoku chart. These charts combine three technical indicators to define a price trend. 

Close and mid prices are manipulated to generate a pattern of signals that are plotted 26 days in the past, 26 days in the future, and along with the current price data. Practitioners of the Ichimoku technique use these charts to identify short-term momentum, long-term trends, and price objectives.

NEWS
Gold Set to Climb as European Crisis Increases Demand for Haven - Bloomberg

Gold steady but euro zone worries weigh - Reuters

Spain, Greece Fears Pressure Gold – Wall Street Journal

CFTC’s Chilton Sees Silver Probe Concluding This Year - Bloomberg

COMMENTARY
Gold Continues To Move Towards The Financial System - GoldSeek

The War on Silver - SilverSeek

65 Year Old Video Says Gold Is 'Good Money' – Zero Hedge

Embry - Expect Shortages Of Gold As Soon As Next Month – King World News

Things That Make You Go Hmmm - Such As The Fiscal Cliff – Financial Sense

Original source