Richard Perry
Independent Analyst
The correction in gold has entered its sixth day now and the price action from yesterday suggests an acceleration. The move came amidst the strengthening of the US dollar (especially after good employment data). The move has also taken gold back below the 144 day moving average (currently $1295.45). The positive configuration on the momentum indicators is also now being tested. The bulls will certainty now be looking towards the support band $1280/$1290 which I now believe acts as the last factor to protect the medium improving outlook for gold. A confirmed breach of $1280 and I would need to re-assess my outlook. The intraday chart does not look especially promising though with the hourly moving averages all in decline and weak momentum. The bulls have got a big fight on their hands, the big question is how much do they want a rally?
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