GOLD – Near term range bound trading is likely
to continue with 1625/1641 barrier
A larger wave IV corrective wave is underway from 1921 (Sep’11 high) which has the potential to test the 1460/1308 on multimonth basis (Alternative view is that a triangle consolidation with the metal holds the 1527 support). The 1791 resistance would remain as tough barrier in the medium term. A break below 1527/1500 would renew the bear trend toward 1460/1308.
The metal is maintaining a range trade after holding the key 1527 support during May risk aversion. The range bound trading is likely to continue with the 1625/1641 resistance is capping the strength. The 1548/1527 looks to hold in the near term on setbacks. A move above 1641 could extend the recovery toward 1672/1697 (prior triangle range) which will remain as tough hurdle in
the short term. A reversal below 1527 however renews the downtrend.
Anantharajan .P, CMT (Technical Strategist, Precise Trader)
