Gold Rallies from Support but 2600 Still the Big Spot
The 2600 test in gold around FOMC yesterday was fast. And the response to that was heavy, with a $53 drop showing up soon after.
But the support zone from 2544-2550 held the lows and buyers got back-in, making another push towards the big figure that, so far, has failed.
While this does add question to shorter-term momentum the bigger item of interest is how bulls react or respond to another support test. This speaks to the bigger picture in gold where, for much of this year, even pullbacks from fresh breakouts have remained relatively light.
In the post from yesterday I had highlighted another zone and this is perhaps more important into the end of the week. This is prior range resistance, from 2527-2531, and the latter level is confluent with the 50% mark of the September major move.
For the last trend it was support at prior range resistance that led into the move and eventual breakout. That will be a big test if this retracement can deepen and push through the 2550 spot that helped to hold the lows yesterday. -js
But the support zone from 2544-2550 held the lows and buyers got back-in, making another push towards the big figure that, so far, has failed.
While this does add question to shorter-term momentum the bigger item of interest is how bulls react or respond to another support test. This speaks to the bigger picture in gold where, for much of this year, even pullbacks from fresh breakouts have remained relatively light.
In the post from yesterday I had highlighted another zone and this is perhaps more important into the end of the week. This is prior range resistance, from 2527-2531, and the latter level is confluent with the 50% mark of the September major move.
For the last trend it was support at prior range resistance that led into the move and eventual breakout. That will be a big test if this retracement can deepen and push through the 2550 spot that helped to hold the lows yesterday. -js
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