Richard Perry
Independent Analyst
Gold
After days of pressure around the 23.6% Fibonacci retracement (of $1451/$2072) at $1926, yesterday’s positive candle has just started to pull the market higher once more. There is still a sense of uncertainty over the outlook after having breached the three month uptrend. The near term uptick has lightened the outlook for what had been looking to be a move towards a bearish breakdown. However, there needs to be a sustainable move higher now. Another bullish session today would certainly go towards doing this. We see the hourly chart above $1940 resistance which improves the outlook, but this needs to be confirmed with a decisive move back above $1955 to really suggest the bulls are pulling away from the previous period of corrective drift. This would then bring a more constructive near term outlook towards a test of $1991/$2015. It would then suggest $1902/$1920 is the basis of support in a range. The continued building of support is key for the bulls to re-assert themselves in a period of uncertainty.
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