Richard Perry
Independent Analyst
Gold has been in retreat now for the past four days as the sharp upside move of last week has more than unwound. This has once more brought it back to the lower reaches of a trading band. Over the past couple of weeks the support around $1175 has been extremely interesting as every time it has been tested on an intraday basis, the bulls have managed to claw back some gains to close around or just above $1175. This has happened again yesterday (close at $1174.80 on my Reuters chart) only for the price to continue to build on support today. That makes today’s trading rather important for the near term outlook because breaking a sequence of 4 consecutive bearish candles would be a sign that the range is once more going to continue. It is very interesting also that in the past few months since gold has struggled for trend direction, the RSI has very rarely broken below the low 40s and one more it is back there again. SO conditions are set up for support to lick in once more. The intraday hourly chart shows that there is minor resistance around $1180 and a move above there would suggest another rebound is on. Continued pressure below $1180 would ramp up the pressure on $1175 and a closing price clear of $1175 would begin to suggest the bears are gaining control for a retest of $1162.
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