With central banks recognizing the easing of inflation pressures across the globe we question just how much upside there is for Gold. Consider that the push for historical highs was driven by Central Banks buying the yellow metal and investors hedging for inflation. Who else is there to buy particularly if the whales are already full. There is some argument for demand as central banks begin to ease but we note only if the easing cycle were to stoke an immediate knee jerk response in inflation.
Resistance
- 2387.70 – High for June
- 2353.46 – Intraday Highs / Lows
- 2344.61 – 50D Moving Average
Support
- 2320.29 – Intraday Lows / Highs
- 2295.59 – June 13 Low
- 2272.12 – 23.6 Fibonacci Retracement
Though failing to generate momentum the SHS breakout from June 7 remains valid forcing us to keep a bearish bias for Gold. We appear to be consolidating just under the neckline of the SHS pattern with 4H stochastic coming off overbought levels. For now we will view a break of 2320.29 as an excuse to jump short playing the range from our June 7 breakout absent any catalyst for a follow through drop. Give us long tails in the hourly charts from above 2272/95 and we will consider going long.
