Yesterday gold tested the 20 day moving average at 1328 in the Asia session before rebounding strongly throughout the rest of the day. The low of 1328 formed a double-bottom on the 4-hour chart providing a solid platform for gold to move higher with a target to break-through the previous high in this rally of 1354.
On both the daily and 4 hour charts we see a clear pattern of higher highs and higher lows, maintaining the up-trend that gold has been in for some time now. We do though need to keep an eye on the bearish RSI divergence that has formed which could signal an imminent reversal. We’re still looking to get more out of this rally, but ideally need to see 1354 taken out in the next few sessions otherwise it may lose all momentum.
The Dollar climbed a little yesterday, following its fall to a 5-month low on Friday, although it remains locked in a strong down-trend which bodes well for the yellow metal.
On its route to 1400 gold faces strong resistance at 1354, 1360, 1375 and 1385; with support at 1330, 1320 and 1310. Above 1400 there will be further resistance at 1415, 1425 and 1435.
On both the daily and 4 hour charts we see a clear pattern of higher highs and higher lows, maintaining the up-trend that gold has been in for some time now. We do though need to keep an eye on the bearish RSI divergence that has formed which could signal an imminent reversal. We’re still looking to get more out of this rally, but ideally need to see 1354 taken out in the next few sessions otherwise it may lose all momentum.
The Dollar climbed a little yesterday, following its fall to a 5-month low on Friday, although it remains locked in a strong down-trend which bodes well for the yellow metal.
On its route to 1400 gold faces strong resistance at 1354, 1360, 1375 and 1385; with support at 1330, 1320 and 1310. Above 1400 there will be further resistance at 1415, 1425 and 1435.