Richard Perry
Independent Analyst
With geopolitical driving events calming down in Ukraine the “war premium” is being edged out of gold once more. This is resulting in a slide in the price. A near term floor that had formed around $1305 was breached yesterday and the price is back below $1300. This now means that the key test of the 144 day moving average is underway now around $1295, (interestingly there is a convergence here with the 55 and 89 day moving averages too which should add to support). The 144 day moving average which has been an excellent gauge for gold has already been tested in the early hours this morning, but remains under threat. The key near term support is at $1291.70 (15th July low) and the bulls will be looking for this to hold. A breach would not be disastrous as there is still the pivot support at $1280, but a breach of that would begin to question the improving medium term outlook.
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