Gold: The consolidation continues [Video]
|Gold
The consolidation continues. As the two big trendlines continue to converge but right now, it would appear that the market is unwilling to take a view on gold. The support of the six month uptrend rises at $1888 today, whilst the two month downtrend falls at $1922. It is of little real surprise that the price seems to be gravitating once more around the $1900 area, with the pivot/resistance band between $1902/$1933 a barrier to renewed upside. Within this, momentum indicators are extremely neutral and lack conviction. The daily RSI continues to hover a shade below 50, whilst MACD lines are flat just under the zero line (i.e. neutral). With a run of small bodied candles (lacking conviction) and the high/low range of the last three sessions all less than the Average True Range of $26, this is definitely a market in “wait and see” mode. A close below $1882 would begin to generate downside momentum (confirmed below $1873 support). A close above $1933 would generate positive momentum. For now though, as with several major markets, it is a waiting game (likely to be for fiscal stimulus and or the US Presidential election).
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