Gold: The bulls took a pause for breath [Video]
|Gold
The decisive breakout above $1789 was a key moment last week. It continued the run higher which has been flanked by a now five week uptrend and once more broke through a previous high to move to multi-year highs. We are backing this bull run on gold and although the bulls took pause for breath towards the end of last week, importantly, there has been little damage to the breakout. There is still an appetite to support gold into weakness. We see anything into the $1789/$1800 area as a chance to buy. Momentum indicators remain strongly configured, with RSI in the high 60s, MACD lines still advancing and Stochastics still in strong configuration (even if they have slipped slightly in recent days). We look for further upside pressure above Wednesday’s high of $1818, with our implied target range from the April/June consolidation rectangle suggesting moves towards $1820/$1858 in the coming weeks. The bulls would lose some of their control under $1764 but the bullish outlook would only begin to come under considerable strain under $1744.
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.