Gold Bulls Find Support at the 20 Day Moving Average

Gold was higher in Sunday evenings overnight trading as it rebounds off the 20 day moving average crossing at 1760.90. If the bulls can maintain this momentum we would expect strong resistance at around 1917.9 to limit upside and bring another fall to continue the consolidation. Stochastics and the RSI remain bearish signaling that sideways to lower prices are most likely for the near term.

Closes below the 20 day moving average crossing at 1760.90 would confirm that a short term top has been posted while opening the door for additional weakness in to early September. Closes above the 10 day moving average crossing at 1812.00 would signal that a short term low has likely been posted.

First resistance is the 10 day moving average crossing at 1812.00. Second resistance is this month's high crossing at 1915.00. First support is last Thursday's low crossing at 1701.70. Second support is the 38% retracement level of this year's rally crossing at 1686.80. Golds pivot point for Monday mornings trading is 1796.40.