The near term consolidation of the past few days on gold has been playing into our neutral outlook. However, although the past couple of sessions have seen the bulls ushered to the side-lines, renewed fears of Coronavirus overnight have driven safe haven flow once more. Gold is subsequently testing higher again. Resistance in the $1572 (23.6% Fibonacci retracement of $1445/$1611) and $1577 (Monday’s intraday high) is being tested this morning. However, trading under $1591 (the February high) we see a continuation of what is developing into a multi-week range. For now, we are happy to retain our neutral stance for the near to medium term outlook. The unwinding moves on RSI (still drifting under 60) and MACD (still in a benign drift back towards neutral) backs this too. However, the support over recent weeks has been building at $1546 (around the 38.2% Fib at $1548). The hourly chart suggests the near term importance of the pivot at $1562 which if breached would imply a retreat towards $1546/$1548 again. Hourly momentum has quietened down around neutral points and despite an early tick higher today, the market lacks conviction moving into the European session.
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