[b]Gold consolidates[/b]
Last Friday gold came within a few bucks of the $2,000 level. But it has pulled back from there and yesterday came close to a retest of $1,950 as support. But it is the area roughly between $1,970 and $1,980 where the tussle is currently playing out. This area acted as resistance in June and July this year.
Having met with buying whenever it has dropped below this region, the bulls will be hoping that it holds around the $1,970 area, consolidates and builds up enough momentum for another charge at $2,000. The MACD on the daily chart looks like its heading into overbought territory. But on the 4-hour chart it has turned lower, suggesting that the consolidation is working in the bulls’ favour. Gold bulls have been left disappointed on many occasions over the years, and so it’s understandable that they fear this could be another one. Having said that, gold has rallied a long way in a short space of time, since breaking out above the downward-sloping resistance line shown above. Now we’re seeing a much-needed correction.
Having met with buying whenever it has dropped below this region, the bulls will be hoping that it holds around the $1,970 area, consolidates and builds up enough momentum for another charge at $2,000. The MACD on the daily chart looks like its heading into overbought territory. But on the 4-hour chart it has turned lower, suggesting that the consolidation is working in the bulls’ favour. Gold bulls have been left disappointed on many occasions over the years, and so it’s understandable that they fear this could be another one. Having said that, gold has rallied a long way in a short space of time, since breaking out above the downward-sloping resistance line shown above. Now we’re seeing a much-needed correction.
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