Where will gold be heading next??
Before we can predict where gold price will be going, lets look at the current Gold chart/ Crude Oil & Currency Trade.
1) Gold has been making some new higher highs and higher lows since 24 Nov, gold is once again entering some consolidation phase. (trading between 840-880)
2) Negative Divergence spotted for MACD histogram even though price movement make a new high between 17-22 Dec. (the MACD histogram is unable to exceed its previous high of 10++)
3) a cross-over of MACD indicates a price reversal is happening now. This could bring to a further price drop as indicated by the cross over in EMA20 days. However 10 min tick data is showing a strong support 840 level.
4) The drop in gold price (Aug) happened at the same time when Crude Oil starts its steep descent
5) The drop in gold price (Aug) happened a few day after the drop in EURO$ vs US$

With this informations, can we summarise price movement in gold is due to impact from Crude oil & currency trade (especially EURO vs USD) ??
.Resistance at price of 48....


Another resistance for EURO vs USD currency trade....


Gold dropped to 840 level at NYMEX trading. What is next?
The next few days will be crucial as it will reveal my entry price, either 840 or 820.

Happy trading.