Gold looks perkier
Gold was looking a bit perkier this morning, having recovered from an initial slump lower on the Asian Pacific open. It has pushed up steadily since then, and is on course for a third consecutive positive session. Despite this, it has yet to break back above $2,660 – a level it sliced below easily on Monday, but which is currently acting as intermediate resistance. In the short term, the parameters are quite clear. Gold needs to break back above $2,660 and rebuild some upside momentum. But it still looks vulnerable to further selling. There’s some support around $2,600, but it broke below here as recently as a fortnight ago. If it repeats that sell-off, then there’s some support around the low in the $2,535 region. A break below here could see gold pull back to $2,500, a level last seen in early September. This kind of pullback would drive a tank through bullish sentiment. But it would certainly reset the MACD at lower levels, and that could trigger a fresh round of buying and renewed hopes of fresh record highs.
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