Richard Perry
Independent Analyst
The gold price is trying to rally, but I would not expect too much upside before the selling pressure resumes once more. The rebound from $1225.30 simply looks to be unwinding overstretched momentum and should give another chance to sell. The intraday hourly chart does suggest a minor recovery as the 5 day downtrend has been broken however could be struggling at the $1240 resistance. The old support of $1240 has become the new resistance and already this morning this seems to be the case. Furthermore, the bottom of the downtrend channel is also a basis of resistance now and comes in around $1245, whilst there is near term resistance up towards $1260. The medium term outlook suggests weakness towards the $1184.50 low and I expect rallies to be sold into before this ultimately is seen.
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