Gold: a risk of selling
As warned over the past few days, gold is not in a position to keep on rising. Yesterday gold managed to rise all the way to $1,916. However, it failed to sustain these gains and dropped back below $1,900/Oz. The technical indicators are heavily overbought and starting to turn lower again, which keeps the possibility for further declines ahead. Such a downside move is only a short-term retracement, and it does not mean that the upside trend is over. Therefore, we still prefer to wait for the downside retracement to conclude before adding new long positions, while we maintain the long positions that we issued back in April at $1,725 and $1,715/Oz for now, but it's wise to raise the stop loss to $1,835 for now.
| S3 | S2 | S1 | Pivot | R1 | R2 | R3 |
| 1854.80 | 1878.99 | 1889.71 | 1903.18 | 1913.90 | 1927.37 | 1951.56 |