Gold is likely to re-test 1308, says Andy Dodd, Head of Technical Research at Louis Capital Markets.
Dodd points out that the break above 1308 following the Brexit vote pushed Gold up in the few weeks that followed, but further highs were rejected and the next level at 1424.6 was not reached. Instead, he says last week’s price action left a Bearish Engulfing candle on the charts and this is usually a “pretty reliable signal that a move is coming to an end”.
As such, Dodd thinks Gold is likely to pullback towards the 1308 level in the short- to medium-term.
Read the full report, including an analysis of the following futures markets:
Dow Jones Transportation Index
EURO STOXX 50