Gold has been quite volatile and not easy for the weak hearts to digest its moves. The real bulls had entered much earlier and now most of them are happy sitting on the sidelines with money off the table. Gold has always been a safe haven for risk averse investors, in times of despair all roads lead to Gold!
The weekly chart below shows that Gold has made multiple tops (A and B) at $930 odd; the RSI is once again at resistance. One thing worth observing is that while the RSI has made a Higher Top, the price has failed to carry up (above the previous top) with the momentum and stalled at $930, hinting at reverse negative divergence! Presently the $900 looks like a good place of support but for all practical purposes $875 should be used as logical stop for all things long, coz below that I personally feel it might be testing times till $835! On the other hand a strong break above $930 would signal the GLITTERING $1000!!!
The daily chart below has all the three 20/50/200 MA’s lined up nicely at approximately $875, $850 and $838 respectively, hinting at support areas to be on a lookout for. The daily chart looks kinda overbought, the RSI has made a small double top above 60, the Stoch is holding on to 80, and MACD is plain neutral. If this weakness (rather a pause) persists then one can watch how the $870 holds before deciding on the bull or bear bias.
"If it is to be it is up to me." Origin Unknown
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