Gold: the bulls are just dragged back again [Video]

Richard Perry Independent Analyst

Gold

Gold continues to climb along the tight support of the six week uptrend. However, there are distinct timing issues with running this trend higher, as every time it looks as though the market is running for a breakout, the bulls are just dragged back again. Friday’s decisive bull candle looked like another breakout in the making, but already this morning the market has unwound back from $1590 more than -$10. The trend sits at $1574 today and has been hit almost to the tick in six of the past nine sessions before pulling higher again. The 23.6% Fib is supportive at $1572, whilst $1562 is a higher low now. We continue to look for weakness as a chance to buy for a test of $1611 but are also mindful that there are elements that this is very much a news driven rally too. For now, momentum indicators are positive, but without being especially strong. The RSI is still just hovering between 60/70 and MACD lines effectively flat. Below $1572 and the market begins to look a little less positive.

Author

Richard Perry

Independent Analyst

EUR/USD tests nine-day EMA support near 1.1850

EUR/USD remains in the negative territory for the fourth successive session, trading around 1.1870 during the Asian hours on Friday. The 14-day Relative Strength Index momentum indicator at 56 stays above the midline, confirming steady momentum. RSI has eased but remains above 50, indicating momentum remains constructive for the bulls.

GBP/USD consolidates around 1.3600 vs. USD; looks to US CPI for fresh impetus

The GBP/USD pair remains on the defensive through the Asian session on Friday, though it lacks bearish conviction and holds above the 1.3600 mark as traders await the release of the US consumer inflation figures before placing directional bets.

Gold recovers swiftly from weekly low, climbs back closer to $5,000 ahead of US CPI

Gold regains positive traction during the Asian session on Friday and recovers a part of the previous day's heavy losses to the $4,878-4,877 region, or the weekly low. The commodity has now moved back closer to the $5,000 psychological mark as traders keenly await the release of the US consumer inflation figures for more cues about the Federal Reserve's policy path.