Gold is showing further weakness late in the day and it seems that the 1500-25$ support is attracting sellers as magnet. Another try to reach and break above 1600 was not successful and it was expected that prices would pull back. Prices made a pause at the 61,8$ retracement of the rise from 1539 to 1590. However prices today fell below 1553 lows and made new fresh lows at 1526.
Trend remains down and bulls only hope remains the 1500-25 area support. Gold has given no intermediate term bullish signal but only a short-term one that push prices to 1588-90 area. Bulls were rejected once again at that level and the were found too weak to break resistance levels. Bears on the other hand seem they have the upper hand.
On a daily close basis prices have still important resistances to break before we can say that the intermediate term trend has changed in favor of the bulls.
As shown in our daily chart above, Gold needs to break decisively above 1600-25 area in order for the longer term trend to change. Until then. it seems that bears let prices bounce just to give it another push lower. We have mentioned many times before in our posts that although our view is bullish for the long-term, we first need to see some important resistance being broken and second the support at 1500 to hold. Nothing has happened and therefore we remain longer term neutral and try to take advantage of the market swings.
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As always, thank you for taking the time to catch up on my thinking!!!