Mon, May 09 2016, 08:45 GMT SzrnFX
Gold spiked higher on Friday after the below-than-expected NFP print. Nevertheless, it failed to reach the 1300 (R2) psychological barrier. It retreated and hit support at 1283 (S1). I would switch my stance to flat for now and I prefer to wait for a break above the psychological zone of 1300 (R2) before getting confident on larger advances. For now, our short-term oscillators give evidence that the precious metal may continue its retreat for a while. The RSI turned down and is now headed towards its 50 line, while the MACD, although positive, looks ready to fall back below its trigger line. A dip below 1283 (S1) could confirm the case and perhaps open the way for another test near the 1270 (S2) zone. Switching to the daily chart, I still believe that the longer-term trend is positive. However, I would like to see a clear close above 1300 (R2) before assuming its resumption. For now, I would treat any possible further declines in the near-term as a corrective phase.