Gold: the failure to push ahead in its recovery momentum will come as disappointment for the bulls
|Gold
The failure of gold to push ahead in its recovery momentum will come as disappointment for the bulls. Even as safe haven flows have begun to resume yesterday, the gold price closed lower and runs the risk that this tepid rally has already run out of steam. The band of overhead supply between $1474/$1480 has come in to act as a barrier to the recovery and yesterday’s high at $1279 is notable. Momentum indicators are tailing off in their recovery too and the small candlestick bodies shows what a lack of conviction the market has over the past week and a half. We continue to see this recent move to be an unwinding rebound that helps to renew downside potential for what we see as a medium term correction. The resistance of the overhead supply around $1480 runs the potential that this is the extent of the rebound. Support at $1464 and $1458 protect $1445. Above $1494 would give the outlook an improving look.
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