Richard Perry
Independent Analyst
Gold
Following yesterday’s failed upside break, the bulls may be starting to grow concerned. This failed breakout has also now turned lower this morning, and the support of what has been a five week uptrend is being tested (supports at $1548 today). For now, this is all part of a consolidation of the past two weeks, and uptrends can often be broken by consolidation without any bearish connotations. So the 38.2% Fibonacci retracement again becomes a key gauge (at $1548), especially on a closing basis. However, the momentum indicators are flashing at least an amber warning light. They are all dipping back again, and if the RSI moves decisively below 60, whilst Stochastics fall away and MACD lines pick up negative pace, this would be a bigger concern. The hourly chart shows a slightly more corrective configuration forming, but the pivot support at $1546 is holding. Resistance initially at $1560 now under yesterday’s high failure resistance at $1568.
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