Gold continues to struggle for any sustained direction [Video]

Gold

Gold continues to struggle for any sustained direction. It had looked mid-last week that the bulls were beginning to flex their muscles again. A breach of the two month downtrend was seen, but resistance at $1933 (the October high) proved too much. The market has since been dragged back to the six month uptrend support. The bulls will point to the uptrend still holding, but the apex of the two old trendlines has now been reached, without any real breakout. So both trends could easily now be broken simply by the market consolidating sideways (as it has done now for over three weeks). Momentum indicators remain almost entirely neutral, whilst the shorter moving averages (21, 55, 89 day moving averages) which illustrate short to medium term trends, are all clustered and flat. We therefore find it difficult to hold any view of conviction for now. Support at $1873/$1882 or resistance at $1931/$1933 need to be broken on a closing basis for any real conviction. For now then, we wait.