May 21st 2021
Gold rallied in New York Trade in an attempt to break 1884 resistance. However, it was unable to break through the sellers. What tends to happen in trading when you have a fail at resistance, you do a U turn and drop to support.
This is exactly what has happened this morning. We are sitting just above support in the 1872 area, provided we hold support I expect another move up, to attempt 1884 in due course. If 1872 is broken you can expected a deeper correction to 1866 or even 1862.
However, we think any dips will be met by enthusiastic buyers, particularly if we can see levels near 1854. Although Wednesday’s minutes from the FOMC meeting caused some concern it seems clear that US Interest rates aren’t going up soon. Keeping the US Dollar depressed.
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