Gold: the outlook is deteriorating for the yellow metal [Video]

Richard Perry Independent Analyst

Gold

With US bond markets shut and broad risk aversion yesterday, the gold bulls had an opportunity to show some support yesterday. However, an intraday gain was once more seen as a chance to sell. The closing breach of the October low at $1458 now confirms that gold is turning corrective. After months of sideways drift, the outlook is deteriorating for gold. Momentum is really showing corrective pressure building now. The RSI under 35 is now the lowest since August 2018, when the bull run really first kicked off. The MACD lines and Stochastics are also moving into bearish configuration. A close under the old July high of $1452 the way is effectively open for a retreat towards the support band $1380/$1400. With overhead supply between $1458/$1480, we now see this as a sell zone for stale bulls.

Author

Richard Perry

Independent Analyst

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