Richard Perry
Independent Analyst
The rebound on gold yesterday showed an interesting resolve for the bulls. In the face of what had become mounting indicators of a correction the bulls have held on to retain the bullish outlook. However this is not to say that the prospects of a correction have entirely vanished. The ideal medium term scenario would be a nice drift back towards the breakout support around $1255 where the bulls can take hold again for the next leg higher. That is what the intraday hourly chart had been threatening before yesterday’s rally. The interesting factor about the rally was that the support at $1271.85 which I have been looking at as the final confirmation of the correction setting in, was never breached and so confirmation was never given. Today’s trading will be interesting as it seems as though there is a barrier around $1300 and there have been two days of successive lower highs (yesterday’s high was at $1297.50) and lower lows (yesterday’s low was $1272.30). The prospects of a near term correction remain unless there can be a sustained move above $1300. Initial support comes in around $1282 before $1271.85.
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