Richard Perry
Independent Analyst
Of all the major dollar-related plays, gold has probably been the one to form the most sturdy of reactions, with three solid days of gains in the wake of the FOMC. This has now dragged the price higher to breach the upper limit of the downtrend channel that had pulled the price lower over the past 8 weeks. The move has also breached the falling 21 day moving average (c. $1181) which has acted as a barrier to the upside in recent weeks. However, it does not mean that the bulls are up and away now. There is the resistance band overhead at $1191 which is yet to be breached. Momentum indicators have been improving with the Stochastics making good ground, but the RSI remains below 50 and the MACD lines are still yet to solidly pick up. The intraday hourly chart shows a band of intraday support between $1168.40/$1175 now to hold up for continued recovery.
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