Gold closed higher due to short covering on Tuesday as it consolidated some of last week's decline but remains below the 20-day moving average. The high-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI remain neutral to bearish signalling that sideways to lower prices are possible near-term. If it extends last week's decline, the reaction low crossing is the next downside target. Closes above the 10-day moving average crossing would temper the near-term bearish outlook.
Join the Discussion