After the disappointment of not confirming the breakout to multi-year highs, the gold bulls have managed to pick themselves up and support the market once more. There is still the risk of a hangover from what remains of a shooting star candlestick reversal from Monday, but the lack of real follow-through suggests that a false upside break was simply a false start to the breakout. Holding the support of the old late April/early May highs at $1722 was important and it is interesting to see support returning in each of the past three sessions between $1724/$1726. Posting a positive candle yesterday, the market actually closed at multi-year highs again. It has gone a long way towards settling the market once more. Momentum indicators are also steadying. MACD lines are beginning to regain upside traction, whilst RSI remains above 60. The market is ticking higher again today and the bulls appear to be back on track. A close above $1746 today would confirm the breakout and imply pressure on Monday’s intraday peak of $1764. The importance of support at $1722 is growing.

gold xauusd chart

 

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