Gold Tests Higher Levels

Gold dipped sharply finding support exactly at our levels. First, we saw support at 1759, then the lower wick of the selloff on the 30 min chart touched 1753 exactly, before a massive bid took us back to the 1780's. As anticipated, 1795 remains the max upper bound for gold, and we are currently finding resistance at the level just under this at 1789. We are seeing the price action start to round off suggesting we are running out of steam for the moment. Unless we see strong momentum come through, we are likely to continue to establish value in the 1780's again specificially, but broadly hold the range between 1777 and 1795. The Kovach OBV is surprisingly flat despite the momentum we saw at that lower bound, which supports our view that gold will continue to establish value in this price area.