Gold Finds Support Around $1,289

Gold found some support around the $1,289 area, which happened to be where the former neckline of the inverse head and shoulder formation was. Prices are getting some lift now, so we wait to see how much bargain hunting materialises. Generally we thought prices did need to have a meaningful correction when they were stretching away from the uptrend line in early March, the correction has been deeper than we expected, but has not turned us bearish. We wait to see how the market now handles this pull-back. Silver also seems to have found some support and we wait to see if the correction in the PGMs has run its course too.

via Mineweb

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza