Richard Perry
Independent Analyst
The failure of gold to take the breakout above $1224 with any conviction was a concern and the large red bearish candle on Tuesday tells me it is still a range play. The lack of conviction in the near term outlook has also been added to by a rather uncertain looking “spinning top” candle yesterday. Coming after such a decisive candle, this consolidation candle just adds to the uncertainty now in the near term outlook. The initial resistance around $1211/$1215 is holding back the bulls now and I see this as more of a continuation of the trading range that had been in play between $1178/$1224 which has never really been decisively breached. With the close below $1210.80 I now expect further retracement in the range back towards the $1200 pivot area which broadly now marks the mid-range point.
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