Gold continues to eye the important psychological $1 600 per ounce level with moderate to good macro buying seen on dips but physical interest still limited said MKS Capital in a briefing.
Alex Thorndike senior precious metals and forex trader with MKS Capital stated that With the Indian rupee continuing to trade close to all time lows versus the U.S. dollar physical gold buying from one of the world's largest gold consuming nations continues to dwindle but other Asian physical buyers such as China have picked up some of the slack. He continued that Technically the next immediate resistance cuts in at $1589.20 (23.6% February May retracement) then $1 600 followed by the $1 618 1 630 area where we have the 50 DMA (50 day moving average) and the March downtrend line. These will need to be broken in order to confirm the previous three month bear action is over.
On the downside $1 525 1 534 remains solid support with four bottoms formed in this range between September 2011 to the present. In addition each bottom in this range was followed by significant rallies in the proceeding sessions so I am looking at a move back towards here as a solid buying opportunity Alex concluded.
