Gold: Are the bulls lacking the impetus that was prevalent during the late March to April rally? [Video]

Gold

A third positive session in a row has improved the outlook on gold once more. However, the daily candlestick bodies are shrinking which suggests that the market is perhaps lacking the momentum to really drive the price higher for a decisive breakout to multi-year highs again. Today’s early slip lower plays into this too. We remain positive on gold over a medium to longer term basis and holding the support at $1693 helps to bolster this view. However, it is becoming clear that the bulls are lacking the impetus that was so prevalent during the late March to April rally. The RSI seems to be rolling over at lower levels at each peak now. Although still holding consistently above 50 (a good basis of a trend higher), this is becoming more of a slow and steady bull run now. We still look towards using near term weakness on gold as a chance to buy. Since May, the area between what is now an eight week uptrend (coming in today at $1700) and the rising 21 day moving average (today at $1721) has been where the bulls are supporting the market. Initial resistance is at yesterday’s high of $1744, under$1753 and the multi-year high of $1764. The importance of the $1693 reaction low is ever increasing.