Spot Gold: Still in broader indecision as upside momentum ebbs
Gold prices have been trading in broad consolidation over the past two months, as the call for patience among Fed policymakers was weighed with the uncertainty in the Middle East and France’s parliamentary election. The lower highs in the daily RSI since April this year do point to some ebbing upside momentum, but the indicator has since settled around the mid-point in reflection of some near-term indecision.
The US$2,292 level will serve as a crucial horizontal support to hold, having been defended on three occasions before. Failure for the level to hold could signal sellers in greater control, which could drive further unwinding to the US$2,223 level next. On the upside, a near-term downward trendline may serve as immediate resistance to overcome for now.
Levels:
R2: 2,450
R1: 2,390
S1: 2,292
S2: 2,223
