Stronger than expected retail figures from the US put gold under pressure yesterday after a positive start in the Asia and UK sessions. The market fell to 1585 before finding support – it looks to us like a good battle is shaping up in this area as the longer-term downtrend tries to hold out against the recently formed uptrend.
At the moment it’s looking quite positive for the bulls as in the past few days there has been some overwhelmingly gold negative news releases which should have seen prices fall away sharply, but each time gold has bounced back and as it continues to do so the more it looks like a bottom has formed and we should be expecting a return to higher prices.
A move above the 20-day moving average and a break beyond 1600 should see us approach 1620 quite quickly, beyond that we’d expect resistance at 1630 and 1655-1660.
For the bears, if 1585 gives way there is more support at 1570-75 and again at 1554. If prices drop below 1554 we’d expect a retest of the 1525 low from May last year.
At the moment it’s looking quite positive for the bulls as in the past few days there has been some overwhelmingly gold negative news releases which should have seen prices fall away sharply, but each time gold has bounced back and as it continues to do so the more it looks like a bottom has formed and we should be expecting a return to higher prices.
A move above the 20-day moving average and a break beyond 1600 should see us approach 1620 quite quickly, beyond that we’d expect resistance at 1630 and 1655-1660.
For the bears, if 1585 gives way there is more support at 1570-75 and again at 1554. If prices drop below 1554 we’d expect a retest of the 1525 low from May last year.