Richard Perry
Independent Analyst
Gold
Gold has been accelerating higher in recent sessions in a move that has taken the yellow metal to levels not seen since 2013. Strong bull candles have burst the market through the $1611 previous resistance means that the January 2013 high of $1695 is the next resistance of any real note, before $1754. With the momentum of this move still strong, this is a run higher that has little to stop it right now. Momentum is very strong. The RSI is rising towards 80 now, but the January bull run saw the RSI above 90 (intraday), so this shows that once the bulls go, there is a real stampede. So, in any bull run we need to be careful of exhaustion signals. There is a gap this morning from $1649 (Friday’s high) which will need to be watched. The January bull run to $1611 culminated in an intraday spike higher before a retracement of -$75. The reaction to the gap at $1648 could be key today. For now, the hourly chart shows strong momentum and the bulls are still happy to support at the traded low today at $1657. If this begins to falter it could be an early signal to watch. For now we are happy to ride this bull move higher, but in extreme moves, there can often be counter moves to be wary of.
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