Richard Perry
Independent Analyst
Gold
Several of the major (forex) markets we cover consistently have been lacking conviction recently, and gold goes into that category too. The past week has been one of false signals and sessions lacking conviction. A run of small candlestick bodies reflect this, where the last five closing levels have all been within $6. This has flattened out momentum indicators amidst this consolidation. The argument would be that there is still a mild positive bias within the medium term range between $1660/$1764 and moves into $1700/$1720 seems to be still supported. However, the lack of conviction suggests caution is required. Will near term support continue to be found in the band $1700/$1720? The hourly chart shows the outlook is all but flat, with consistent resistance between $1730/$1733. Hourly RSI struggling under 60 for the past week and MACD lines struggling around neutral are the momentum reflection of this. We look for sustainable moves away from these positions to signal the next move. Above $1733 the resistance of $1744 is a key medium term barrier. For a near term corrective move to take hold, a close below $1704 is needed. For now though, gold is struggling for real traction.
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