Gold Daily Technical Outlook

Written by Oil N' Gold | Wed Jul 08 09 06:55 ET
Comex Gold (GC)

Gold edges lower today but after all it's still staying in range of 913.2/938.1. Nevertheless, intraday bias is still mildly on the downside with 934.8 minor resistance intact. Break of 913.2 will confirm that whole decline from 992.1 has resumed for 865 low. On the upside, above 934.8 will turn intraday outlook neutral again and indicate that consolidation from 913.2 is still in progress. But even in case of another rise, upside is expected to be limited by 61.8% retracement of 992.1 to 913.2 at 962 to conclude the consolidation and bring fall resumption.

In the bigger picture, favor is in the case that that fall from 992.1 is the third leg of the consolidation from 1007.7, which is not completed yet. Break of 913.9 fibo support will target a test of 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.