Gold: Nearing resistance
As can be observed from the daily chart, spot gold has neared the upper trend line resistance ($1,684) of the falling downward sloping channel. With yesterday’s negative close gold has completed its pull back. The daily momentum cycle is about to complete its up cycle and is ready to start a new down cycle. On the lower side the targets can be maintained at $1,613 (20 day moving average [DMA]) and $1,578 which is the 61.8% retracement of the $1,669.75 – 1,521.94 move. Reversal of the view is placed at $1,684 which is the upper end of the downward sloping channel.