The sharp bull run (which added around 12% back on to gold) has just begun to roll over. The near term positive momentum is just turning into consolidation. The daily chart shows a small negative candle yesterday (albeit with a positive close) but this is now being pulled lower this morning. The impetus in the rise on Stochastics and RSI is tempering. The hourly chart shows this as more of a consolidation but the price is still at risk of a near term drift back towards the key breakout $1553/$1560 which is a pivot area. The hourly chart also shows the initial support to watch remains at $1585 which has turned into a pivot over the past couple of days. A drop below $1585 would open the move towards $1553/$1560. Resistance is beginning to form under the $1635 rebound high, at $1625 and $1617 today. Gold has turned into a near term consolidation with corrective potential (especially if hourly RSI begins to fall below 40). However, we would continue to view near term weakness on gold as a medium term buying opportunity.
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