Richard Perry
Independent Analyst
The recent consolidation continues on gold however there still seems to be a slightly corrective aspect to the chart. Having drawn in the Fibonacci retracements on gold from the recent bull run, the support around $1272 becomes increasingly important. The 23.6% Fibonacci retracement of $1168 to $1305 comes in around $1274. This adds weight to my assertion that the key near term support at $1272 is protecting gold from a deeper correction back towards the $1255 support of the key October high. There is a corrective target of $1252 from a top pattern on the hourly chart, whilst the 38.2% Fib retracement comes in at around $1254. The hourly chart shows a rally off $1272 support has turned lower at $1297 and is now sliding lower again. The outlook will remain unsure until either the support at $1272 gives way, or the resistance at $1298 is breached. Either way, for now the gold price is in consolidation mode.
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