Gold (intraday): Downside potential
This morning a bit of weakness has greeted the early session, with bids pushing the gold market below the 1750 area. After the recent strength seen in the market, the precious metal consolidated between 1733-1790. The formation of a double top on the daily chart suggests that there is some downside potential in the market. As the bulls are losing their momentum a break below 1742 would expose resistance at 1738 and 1729. Although the intraday bias is negative, we should note that gold is in a strong long-term bullish trend and therefore short-term weakness can be seen an a good buying opportunity. As long as the 1660 support level remains intact (and with the central banks keep pressing CtrL+P), gold is expected to continue its grind higher. Economic data pick up today again with US Jobless Claims and Phil Fed Survey among the most notable.
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