Richard Perry
Independent Analyst
Gold
There is a slight positive bias that has returned to the gold market in the past 24/36 hours. This comes as broad market sentiment has taken fright once more from the Coronavirus and an associated move back into safe have assets has been seen. The question is now whether gold can begin to find traction and break the shackles of the consolidation of recent weeks. Trading clear of the 23.6% Fibonacci retracement (of $1445/$1611) at $1572 and near term resistance at $1577 would open a test of $1591. Whilst the market is testing this barrier again this morning, right now it is unable to make the breakout. The hourly chart shows the growing importance of $1562 as near term support now, however, there is more that is needed from the bulls to really break free. The hourly RSI may be between 50/70 consistently is the past day or so, but needs to push above 70 to really suggest the bulls are finding traction. Hourly MACD and Stochastics rolling over in the past 12 hours or so does not suggest the bulls are ready yet. Watch initial support at $1571 as a basis for a new near term higher low formation now. If this is decisively breached this morning, it would suggest the bulls are pulling back again.
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