After failing to hold onto its gains after breaking through the 200 DMA at 1662 yesterday, gold saw some mild selling pressure and a test of 1650. The market recovered well from that level and is currently trading around 1661, just below the 200 DMA.
Gold continues to regroup after the sharp sell off last week to 1625 - it appears more and more likely that this will mark a bottom of sorts. A break above yesterday's high at 1666 and in particular a close above the 200 DMA will provide further evidence that this is the case and a break above 1694 and 1703 will confirm the bottom is in for this correction.
Alternatively, a break of support at 1640-1642 suggests a retest of 1625 is on the cards - if this level gives way, 1575-1585 and 1525 come into play.
The macro economic environment, with governments around the world stimulating economic activity through quantitative easing and other measures coupled with negative real interest rates, continues to be favourable to gold and, until this changes, the bull market in gold will remain intact.
For our subscribers at www.goldtradingexperts.com, today's video looks at the price action from yesterday in more detail and the resistance levels above.
Gold continues to regroup after the sharp sell off last week to 1625 - it appears more and more likely that this will mark a bottom of sorts. A break above yesterday's high at 1666 and in particular a close above the 200 DMA will provide further evidence that this is the case and a break above 1694 and 1703 will confirm the bottom is in for this correction.
Alternatively, a break of support at 1640-1642 suggests a retest of 1625 is on the cards - if this level gives way, 1575-1585 and 1525 come into play.
The macro economic environment, with governments around the world stimulating economic activity through quantitative easing and other measures coupled with negative real interest rates, continues to be favourable to gold and, until this changes, the bull market in gold will remain intact.
For our subscribers at www.goldtradingexperts.com, today's video looks at the price action from yesterday in more detail and the resistance levels above.