Commodities Weekly (14 May ’17)

Gold XAU remains under pressureThe anticipated corrective pullback is underway, with Gold prices correcting steadily lower from the USD1295.42 high of April.

Unwinding oversold daily studies are prompting stabilisation above the USD1208.80, (50%) Fibonacci retracement. However, congestion around USD1250 is expected to prove difficult to clear, as momentum studies and the Tension Indicator continue to weaken.

In the coming weeks, risk is for a fresh test lower, with a break below USD1208.80 targeting critical support at the USD1194.55 low of March. A close beneath here will confirm a more significant bear trend, and open up the USD1188.50, (61.8%) Fibonacci retracement, ahead of USD1145.68.

A close above USD1250 would help to stabilise price action, and improve currently bearish investor sentiment.

 

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