After failing to better Monday's high of 1619, the weak recovery rally in gold has petered out, with the price falling below 1600 this morning. The 1596 Friday low has also been broken and gold is again testing the lower boundary of the 5 month old down trend channel in the 1585-1590 area.
If gold cannot find support here, then 1550 and 1525 come back into play, however gold remains oversold on the RSI for all timeframes from daily down to 30 minutes.
The dollar continues to find strength, though the strong oil price is still not having any impact on the gold price at all.
If gold can find support at 1585-1590, the prospects of a recovery to 1625-1630 remain reasonable.
Today's video looks at some RSI divergences and our targets for a recovery rally.
If gold cannot find support here, then 1550 and 1525 come back into play, however gold remains oversold on the RSI for all timeframes from daily down to 30 minutes.
The dollar continues to find strength, though the strong oil price is still not having any impact on the gold price at all.
If gold can find support at 1585-1590, the prospects of a recovery to 1625-1630 remain reasonable.
Today's video looks at some RSI divergences and our targets for a recovery rally.