Gold continued to drift higher yesterday, hitting resistance again around 1618 before selling off slightly this morning. Gold is currently trading around 1610.
The pattern of higher lows continues and, although there is no conviction behind the rally yet, we have certainly moved to a "buy the dips" mentality from one of "sell the rallies", which we believe is significant for the future direction of the market.
The longer that gold remains above 1600, the higher the chance of a resolution to the upside of the corrective triangle, 1630 is the key level to watch for an upside breakout.
The pattern of higher lows continues and, although there is no conviction behind the rally yet, we have certainly moved to a "buy the dips" mentality from one of "sell the rallies", which we believe is significant for the future direction of the market.
The longer that gold remains above 1600, the higher the chance of a resolution to the upside of the corrective triangle, 1630 is the key level to watch for an upside breakout.