Gold: The bulls have been dragged back once more [Video]
|Gold
Just when it looked as though gold was starting to build some positive traction, the bulls have been dragged back once more. This tendency has been a feature of this bull run on gold. Breakouts never seem to be clean. A bearish outside day session yesterday comes as a disappointment for long positions, but is not disastrous, yet. A pullback to the support of what is now a four week uptrend (today at $1764, which is also the breakout of the old May high) has the potential to be an opportunity. However, the bulls will need to fight for it. The market ticking back lower this morning is again testing $1764. The breakout of the old May high at $1764 has been a basis of support in recent sessions, but if there is a closing breach of yesterday’s low at $1758, then the impetus of this breakout will turn sour and be lost. Momentum indicators have tailed off slightly in the wake of yesterday’s move, but retain their positive configuration for the time being. They will also need to be monitored for corrective developments. Whilst we are again left frustrated by this latest failure to break clear of resistance, we would remain positive on gold whilst the market holds on to the breakout of the old highs above $1744. Resistance at $1789 is the new multi-year high, a shade under $1795 which is the key 2012 high and we still expect this to be tested in due course.
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