Richard Perry
Independent Analyst
Gold
In keeping with moves across the major markets, yesterday’s news of progress towards a Brexit deal (which gave risk appetite a shot in the arm) has had an impact on gold. A solid negative candlestick and a -$17 move has reiterated the current negative bias that has been developing within the $1458/$1557 multi-month range. The drift lower on momentum indicators are reflective of this negative bias, but there is still a lack of conviction in the move. That is shown in the mild rebound this morning. A close at the old $1481 support shows that the market is on the brink and really testing lower now though. Breakdown signals could easily come if there is further progress towards a Brexit deal. Below $1474 would open the $1458 key low again. Resistance is now beginning to mount under $1500 with the last two session highs at $1497. The hourly chart shows corrective configuration on momentum, with the hourly RSI failing at 60 now, suggesting that intraday rallies are increasingly being sold into.
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