Gold closed higher due to short covering on Thursday as it rebounds off the 50% retracement level of this year's rally crossing. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI are bearish hinting that additional weakness is possible near-term. If it extends the decline off June's high, the 62% retracement level of the aforementioned decline crossing is the next downside target. Closes above the 20-day moving average crossing are needed to confirm that a short-term low has been posted.
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