Gold pointing higher

10 Jul

Gold was a touch firmer in early trade this morning, building on yesterday’s gains, and clawing back a proportion of Monday’s losses. It has been a feature of the gold market since April that incremental gains made over many days, or even weeks, get wiped out in a single session. This has done a fair amount of damage to the bullish sentiment that had been building since February this year. Despite this, there’s a small but appreciable upside bias creeping in now, which is showing up in the daily MACD. Upside momentum is picking up with the MACD now above the neutral level. But recent price performance should still keep the bulls cautious for now, given how quickly hard-won gains can be wiped out. Silver is in a similar situation, although the price action over the past fortnight looks more constructive for the bulls. There’s a decent area of support between $28.60 and $28.80, but $32.00 remains a serious level of resistance.