Bullion Weekly Technicals 10 December 2013

Gold – Daily Chart

Stabilisation is ongoing and positive divergence points to a bounce, neutralising our forecast

Even though the gold price has not yet taken out the 1257.27 late November high we have decided to neutralise our medium term forecast for the following three reasons:

1) no follow through to the downside has been seen and instead gold has broken out of its one month downtrend channel;

2) the current December low at 1211.57 has been retested late last week and not only held but was followed by a short term reversal to the upside;

3) we can see triple positive divergence on the daily RSI.
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