Gold holds support

18 jun

Gold was lower again overnight following yesterday’s negative session. Despite this, gold is still managing to hold above $2,300 although it wouldn’t be a huge surprise to see a retest of this level. The daily MACD has fallen below zero which would suggest build in downside momentum. But it appears to be flattening out. It is also back to levels last seen in mid-February just before a rally which saw gold jump 20% over the following two months. Could history repeat, or are we about to see a significant shakeout? This week could be the decider. Bear in mind that many US markets will be affected by tomorrow’s Juneteenth holiday, and that we have Retail Sales and Industrial Production later today. A similar situation appears to be developing in silver. The area just below $29 has acted previously as both support and resistance, while the daily MACD is now approaching neutral levels having been ‘overbought’ for a month.