Spot Gold continued upward movement yesterday. Price of gold reached slightly above 1590 and closed at 1,585.21, up 13.32. Gold graph shows the formation of a higher high and higher low which indicates further upside in near term.
We believe the 14-DMA may provide resistance at 1,590. A strong break in price of gold is required to continue upward movement. Any break in gold spot above will deliver gains in the range of 1,598-1,616.
The RSI and the Stochastic Oscillator are slightly rising, supporting the neutral to positive view. Furthermore price of gold is supported by the rising trend line on hourly charts.
Support 1580.00 1576.00 1567.00 1563.00 1555.00
Resistance 1590.00 1600.100 1605.10 1615.00 1620.00
Based on Gold Charts we recommend investors to buy gold near 1577 with risk defined below 1,570.We suggest profit taking in stages at 1582 and later 1588