Gold: bullish bias above 1660
Tuesday’s volatile session saw gold skyrocket before reversing all the gains and closing in negative territory at 1700 in line with global equities and risky assets. At 1708 this morning the bears seem to be taking a respite for now with the market likely to continue to consolidate between 1700-1723 before another major movement comes.
Considering the bullish long-term outlook of the gold market and the risk-off sentiment, gold could clear the 1750 area to target the 1800 level soon. As long as support at 1660 remains intact, the yellow brick seems to have the wind in its sails. Economic data starts to pick up again today with the US new home sales and the FOMC meeting among the most notable.
Published: 24 October 2012
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