Richard Perry
Independent Analyst
Having looked for confirmation of the medium term strength of gold, there was another sign of it yesterday, with the first entire trading session clear of the $1240.60 old resistance. This has continued the rebound over the past 13 days and has opened the subsequent upside resistance levels of $1260 and more importantly at $1280. The daily momentum indicators continue to improve with the MACD lines now up at neutral and interestingly the Stochastics having spent the past week and a half above 80 (a sign of strong momentum). The intraday chart shows a consolidation overnight, but there is good near term support now between $1240 and $1245 to use as a potential buying opportunity. The reaction low at $1231.50 is the key near term support that protects a breakdown.
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