Gold Technical Update
Our last gold update noted 1600 as a key pivot to monitor for the recovery form the 1530 range support. The market indeed held the rally from going above. As the 5/22 US session progresses, it is trading down below 1550. It seems poised to retest the range support. Perhaps the lack of stimulus in Japan gave way to the current drop, because if central banks crank up stimulus measures, gold should rally against the increased supply of fiat(printable) currency.
The daily chart shows the market again approaching our range support which goes down to 1522. If we get a bullish divergence with central banks increasing stimulus talk/action, expect some support and another push toward the 1600 area.
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Fan Yang CMT is a forex trader, analyst, educator and main contributor for FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.