Gold: Near term rallies will struggle [Video]
|Gold
Two decisive positive candlesticks have moved the outlook for gold back to a crucial crossroads. The old August/September lows between $1902/$1926 have left key medium term resistance. The rebound in the last couple of sessions has hit $1899 and begun to slip back. The configuration on momentum indicators suggests that near term rallies will struggle. As such we still prefer pressure towards the newly formed six month uptrend (today at $1856). Closing back under $1875 (yesterday’s low) would play into this outlook. The rally continuing to fade around the $1900 area suggests that the bulls are not ready to regain control. There needs to be a move back above $1926 at least (the 23.6% Fibonacci retracement of $1451/$2072) to even suggest momentum for a test of the now six week downtrend. The risk is still for a retest of $1848 in due course.
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