Richard Perry
Independent Analyst
During my analysis video of gold yesterday I almost talked myself into believing in a near term correction and that is what seems to be increasingly threatening as the gold price appear to have rolled over. The daily chart shows momentum has been lost and a correction is threatening. The intraday chart shows a small top pattern has formed below the support at $1279 but I believe that the support of the reaction low at $1271.85 is now key. If that support is breached it would confirm the loss of a higher reaction low within the bull run and suggest a correction. This would then open the way for a move back towards the $1255 key old resistance which is now supportive. Overnight today the support at $1271.85 has just remained intact (today’s low is at $1272.30) and for now the bulls are hanging on to the strong rebound. However beware because there has been a significant shift in the past 24 hours where momentum is no longer as positive as it has been through the last couple of weeks. Gold could be in the process of building for a correction and the bulls must be careful. Resistance is now $1287.20 and $1300.
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