After a relatively quiet trading day yesterday, gold remains near the upper boundary of the intermediate downtrend channel.
The upper boundary of this channel currently sits at 1628, which should prove to be significant resistance as it also corresponds with the 38.2% Fib retrace of the decline from 29 Feb to 16 May. A close above this level would go a long way to confirming the bullish case that the correction has run its course.
However a sell off from this level will portend a return to the 1525-1530 support zone.
We watch with interest.
The upper boundary of this channel currently sits at 1628, which should prove to be significant resistance as it also corresponds with the 38.2% Fib retrace of the decline from 29 Feb to 16 May. A close above this level would go a long way to confirming the bullish case that the correction has run its course.
However a sell off from this level will portend a return to the 1525-1530 support zone.
We watch with interest.
