Richard Perry
Independent Analyst
Gold
The bulls are threatening to grasp control of the market once more. A decent gain on the day (of +$15) and a solid positive candle has pulled the market higher within the consolidation. Reaction around the initial resistance of $1722 will now be key. This has been a barrier for almost three weeks but with the market pulling clear above the $1702 pivot (which has been a consistent consolidation area for 12 sessions in a row) suggests that the bulls are stirring from their slumber. A mini two week uptrend is also now forming within the range. As the market has been steadily forming converging support and resistance levels over the past month, a move above $1722 could be significant. There is an interesting uptick on Stochastics this morning as an initial move, but there needs to be more on RSI and MACD lines to see more conviction. It is still too early to say that this is the time for an upside breakout, but the bulls are at least beginning to mobilise again as positive hourly momentum is building. A close above $1722 opens $1738 and the more considerable resistance of the multi-year high at $1746.
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