Gold Market Commentary For Thursday Morning Sept. 8th

Gold was higher due to short covering in Wednesday evenings overnight session and continued this morning as gold consolidates some of Wednesday's decline. Stochastics and the RSI are diverging but remain neutral to bullish signaling that sideways to higher prices are likely near term. To maintain this upside move a break of 1923.7 would confirm break of Fibonacci 61.8% level of 1478.3 to 1917.9 from 1705.4 at 1977.1.

But closes above August's high crossing at 1915.00 would be enough to renew October's rally into uncharted territory. Closes below the 20 day moving average crossing at 1811.20 would temper the near term bullish outlook. Closes below the reaction low crossing at 1701.70 would confirm that an important top has been posted while opening the door for additional weakness near term.

First resistance is Tuesday's high crossing at 1920.70. First support is the 20 day moving average crossing at 1811.20. Second support is the reaction low crossing at 1701.70. Golds pivot point for Thursday morning trading is 1831.50.