Commodities Monthly (Feb ’16)
The anticipated corrective bounce in Gold has appeared, with prices extending further than expected to reach the USD1250, (23.6%) retracement of the 2011-2015 fall. Rising momentum studies and a fresh tick higher in the Tension Indicator suggest further improvement in investor sentiment, with Gold prices to extend gains in the coming months towards congestion around USD1300.
Still higher are the USD1325~, (38.2%) retracement of the 2012-2015 rally, and the USD1345 high of July 2014.
Support is raised to USD1100 and should underpin any pullbacks, as a significant trend change develops and investors adopt a buy-into-weakness strategy. If broken, not seen, focus will turn back to critical support at the USD1045.85 year low of December 2015, as investors turn negative once again.
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