Gold: Sells into strength again [Video]
|Gold
The consolidation that we have been seeing develop in the past few sessions, continues to impact on gold This means that the sharp rally has now hit the buffers around the 23.6% Fibonacci retracement (of the original bull run between $1445/$1702) at $1641. Tempering this rally in the past few sessions, is now seeing the momentum indicators moderate their advance. RSI has held around 55 whilst Stochastics are still advancing along with MACD. This leaves a mild positive bias although we are increasingly cautious of the advance now as the market again sells into strength early this morning. The prospective corrective move has yet to play out (holding above $1585 near term support), but if a second consecutive negative candle is formed today, then the move could begin to weigh on the recent recovery gains. The hourly chart shows a mini-range formation between $1585/$1642, but the hourly RSI moving below 40 would be an indication of the positive bias just slipping away again. A close below the 38.2% Fib at $1604 would begin to also weigh on sentiment. For now though gold is in consolidation.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.