Minor bounce off last week’s low at 1539.96 is being seen
- Last week the gold price rapidly dropped to 1539.96 before recovering to 1583 early this week.
- Since the current April low was accompanied by positive divergence on the daily RSI, we expect the 1600 region to be retested in the days to come.
- The next higher resistance area seen between the 55 day moving average at 1613.23 and the downtrend channel resistance line at 1626.20 is expected to cap, however.
- While this is the case, medium term downside pressure will be maintained, meaning that the 1522.48 December 2011 low may well be revisited. This is still not our favoured scenario at present, however, but it is something which could nonetheless unfold later in the year.
- Failure at 1522.48 would be medium term bearish and lead to the 200 week moving average at 1434.34 being eyed.
Gold – Weekly Chart
Gold again found support in the 1540/20 region but stays within its 2012-13 downtrend channel