In the gold market, the 18-day moving average of closes is the point of resistance. I think you are at the culmination of a leg of short covering after a huge break in the market.
Market sentiment matters, not fundamentals. Once the market is able to break out through 4375-4401SPX resistance, it will suggest that we are likely on our way to 4800SPX.
Gold may be poised for a rebound. However, we wouldn’t be out of the woods completely until we take out $1,950. Just regaining $1,900/$1,925 would be an accomplishment.
The relative strength index (RSI) for gold is currently at 21; this level has only been seen seven times over the past decade. Gold returned 10% on average over the next 78 days...
