Gold: There is still an appetite to support gold between $1450/$1465
|Gold
We began discussing the potential for the end of the selling pressure on gold yesterday. An initial attempt at recovery faltered at $1553 before falling consistently during the session to leave yet another strong negative candle. However, coming into the European session today, there has been a pick up off the lows once more. There is still an appetite to support gold between $1450/$1465, but this is just a near term situation right now. How the bulls respond today will be interesting. The hourly chart shows that resistance has started to form between $1500 and the mini neckline at $1519 (turning into a pivot). If the bulls can mobilise and push through this resistance then the prospect of a recovery may not be so fanciful. Hourly momentum indicators are slightly encouraging but nothing yet to suggest a sustainable rebound though. Given how the market responded yesterday with renewed selling pressure, the risk remains to the downside and a breach of $1445 (the November low) would open the floodgates once more.
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.