Gold Daily Technical Outlook

Written by Oil N' Gold | Tue Jun 09 09 06:34 ET
Comex Gold (GC)

Intraday bias in Gold remains on the downside with 961.1 minor resistance intact. As mentione dbefore, a short term top should be formed at 992.1 and break of 915.2 support will confirm this case and bring deeper decline. On the upside above 961.1 will turn intraday outlook neutral first. But break of 992.1 resistance is needed to indicate that recent rally has resumed. Otherwise, risk is now on the downside.

In the bigger picture, recent development argues that rise from 865 has possibly completed at 992.1 already, ahead of 1007.7/1033.9 key resistance zone. Also it suggests that consolidation from 1007.7 is still in progress and break of 915.2 support will bring the third leg down to test 865 support before completing the whole consolidation. Nevertheless, downside is expected to be contained by 801.5 cluster support (61.8% retracement of 681 to 1007.7 at 805.7 ) and bring resumption of rise from 681. On the upside, though, above 992.1 will revive the case that rise from 865 is resumption of up trend rather than part of sideway consolidation. In such case, retest of 1007.7/1033.9 resistance should be seen next.