Gold has been seeing some wild movements in recent days as a sharp three day rally added over 10% back on to the price (having previously fallen almost -15% during the $1702 to $1450 sell-off). However volatility is still clearly very high and this does not necessarily mean that gold will be traveling entirely in one direction. As we come into the European session, gold is beginning to slip slightly once more. This could simply be an account of near term profit-taking (and effectively moderating some of the exuberance of the recent rebound). It could generate another corrective near term move though. The hourly chart shows a rolling over from $1635 overnight. This is unwinding overbought hourly momentum. If the RSI were to pull below 40 and hourly MACD back below neutral it would indicate that the near term bull move has played out and at least a more ranging outlook could be formed. A move back under $1585 (intraday low from yesterday) would add to the likelihood of a pullback towards the pivot area (of old highs and lows in the past couple of weeks) between $1553/$1560.
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