Gold: market looking for the next catalyst [Video]
|Gold
The volatility of the spike higher and subsequent retracement on gold is settling down. It is interesting to see that having briefly been breached earlier in the week, the 38.2% Fibonacci retracement (of $1445/$1610) at $1548 is becoming a floor that the bulls are working from. This comes as the consolidation continues to build. The corrective momentum of momentum indicators is moderating now, with the Stochastics bottoming out and importantly, the RSI holding well above 60. The market is looking for the next catalyst, but it is notable that even with broad risk appetite picking up, gold is holding firm. There is a stable look to moves on the hourly chart with $1536/$1563 becoming the range. Within that $1546/$1558 is a tighter range of the past couple of sessions. We continue to view gold as a medium term buy into weakness and the potential is that the corrective move of the past week has now played out. Support at $1536 is increasingly important, especially if the market moves above $1563.
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