While the gold ($GC_F) futures are off this morning we did see some strength in the gold market on Friday – breaking back above $1300/oz. Last week I spoke with Barbara Kollmeyer at MarketWatch about where I think the line in the sand is for gold based on technicals.
Andrew Thrasher, investment analyst at Financial Enhancement Group, says gold needs to regain and hold through its 50-day moving average — continued resistance since November 2012 and break-through resistance at $1,350 — if it’s going to break out higher. He also notes the gold Relative Strength Index, a momentum indicator, is stuck in a bearish range of 20 to 60 as “buyers appear unable to fully retake the reigns to have gold continue higher.”
Gold bulls still have a lot of work to do to push prices back into an uptrend, I’ll continue to be keeping an eye on $1350/oz. as the level of resistance we need to break above to get any kind of confidence in further appreciation.
Click over to see the chart and further analysis from some other traders.
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