Gold sold off after making a new high of 1599 after the release of yet more postive US economic data.
However, in another positive development for the bulls, the market found support at 1577 and, in a repeat of Friday's price action, bounced strongly to end the day above unchanged at 1592 and form a bullish "hammer" candlestick on the daily chart.
The price action continues to suggest that sentiment in gold is tilting back towards a "buy the dips" mentality, indicative of a bull trend. This is in contrast to the "sell the rallies" sentiment that has prevailed for the past 5 months.
The bulls will want to see a strong showing today to form a solid green candlestick on the weekly chart and set the market up for further gains next week. The confidence is returning to the bulls after a long correction, with the attitude being "if the recent strong data from the US can't break the 1550-1560 support zone, what will?"
Today's video for subscribers looks at yesterday's trading in more detail and our thoughts on where the market is headed next week.
However, in another positive development for the bulls, the market found support at 1577 and, in a repeat of Friday's price action, bounced strongly to end the day above unchanged at 1592 and form a bullish "hammer" candlestick on the daily chart.
The price action continues to suggest that sentiment in gold is tilting back towards a "buy the dips" mentality, indicative of a bull trend. This is in contrast to the "sell the rallies" sentiment that has prevailed for the past 5 months.
The bulls will want to see a strong showing today to form a solid green candlestick on the weekly chart and set the market up for further gains next week. The confidence is returning to the bulls after a long correction, with the attitude being "if the recent strong data from the US can't break the 1550-1560 support zone, what will?"
Today's video for subscribers looks at yesterday's trading in more detail and our thoughts on where the market is headed next week.
