Richard Perry
Independent Analyst
The gold price appears to have found a floor in the past few days and this could be the setting for another near term rebound. The decline seems to have been limited (at least for the near term) at $1273. The momentum is very weak still but there are initial signs that there might be a technical rally may be underway. The very near term resistance at $1280 which had held back a recovery has now been breached and is acting as a support level as the intraday hourly chart begins to show some minor higher lows. The resistance now at $1290.70 becomes key near term as a move above would suggest not only higher lows but higher highs forming on the intraday chart. However, I still believe that this would be just be a minor rebound before the selling pressure returns once more. The daily chart shows key lower highs and lower lows over the past 7 weeks, but there is certainly room for a near term rebound. The resistance band comes in between $1300/$1310. The caveat to this is the flaring up of geopolitical tensions in eastern Ukraine which would likely cause a spike higher in the gold price.
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