Yesterday saw gold start to recover after the precipitous declines of the previous week, with the price moving higher off the overnight low at 1554 to finish up a few dollars on the day at 1570.
Overnight, gold has continued to recover from an extremely oversold position, though the market appears to be finding resistance around 1584.
The market will remain fragile and vulnerable to further declines in the short term and we want to see further evidence before we declare a bottom is in.
With oil selling off hard after making a "double top" at $98.65 and a bearish RSI divergence on the daily chart, together with the dollar rallying from key support, the headwinds to further short term gains in gold are strong.
However, the extremely oversold position will attract bargain hunters and a snap back rally is likely to occur in the next week or two.
YOU SHOULD NOT TAKE ANY MATERIAL posted on this BLOG AS RECOMMENDATIONS
TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED.
Do your own due diligence.
No one knows tomorrow's price or circumstance.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
King Regards
