Richard Perry
Independent Analyst
Gold
The control that the gold bulls had during July and early August has been lost. An uptrend that supported the run higher during the summer months has now been broken as a phase of neutral trading has set in. What we now see is that gold has developed a range between $1902/$2015. Anything into the low $1900s is finding support, but as the market again fell over on Friday, the bulls cannot now sustain traction in a run higher. Momentum has been neutralised, with daily RSI, MACD and Stochastics all around their neutral points. The 23.6% Fibonacci retracement (of $1451/$2072) at $1926 is still a key element of support (on a closing basis especially) and is seen as a key gauge. However the bulls seem to be increasingly misfiring. It was interesting to see the old$1955 pivot coming back in as a basis of resistance again on Friday. This resistance will need to be decisively overcome for the bulls to believe that traction is beginning to be made again. Initial support is $1937/$1940 which is protecting the 23.6% Fib level again today.
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