Gold: Is there just a hint of positive bias beginning to show through? [Video]
|Gold
We have seen so many major markets (forex and commodities) consolidating recently. This is the same with gold, but is there just a hint of positive bias beginning to show through? The two trendlines continue to converge (six month uptrend now at $1885, two month downtrend now at $1925), but with the market just putting together a run of higher lows and higher highs in the past month, there is a bias towards testing the downtrend now. Early gains today are helping to forge this view and if the market closes around here tonight, it would be three positive closes in the past four sessions. Trading back above $1902 also adds to the mild sense of improvement. The key resistance remains $1933, but a close above the 23.6% Fibonacci retracement (of $1451/$2072) at $1926 comes with increasing positive intent now. The hourly chart shows resistance initially at $1912 this morning and a move through here will give the bulls a little more confidence of a positive bias which is beginning to hint into the hourly momentum. Initial support at $1897 above Thursday’s low of $1889. A close below $1873 would be a breakdown.
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