Durable goods order raised tapering questions again
Precious metal has topped its psychological level of $1400 and if this move can continue any further depends on some important fundaments. Bad news is a good news phenomena which has been the theme for the shining metal failed to astound investors yesterday. The final reading for the US durable goods which showed a decline of 7.3% was so dreadful that investors are even more confused where they stand on the tapering agenda and started to question the recovery in Q3. However, if the tapering will have any meaningful impact due to the dreadful durable goods number, is still a question, given that this economic data has a tendency to be extremely volatile.
Gold- The upward trend could continue further
Gold is trading in its resistance zone on a 30 minute time frame. The resistance does have a some importance as the price has left this zone with a sharp ballistic move to the downside which was a confirmation of a heavy selling pressure. However, the price action is strong at the moment with a bias that the uptrend which is trading in an upward channel could break this resistance level. Moreover, the yellow metal is trading above the 50 day (shown in green) and 100 day (shown in yellow) moving averages which confirm that the bulls are still in control of the price action.
Nonetheless, the RSI is not agreeing with the above argument which mean that while the price action is making the higher high, the RSI is not confirming this. Therefore, this upward move could pause or reverse this trend soon.
1422 -1408 Minor
1283 -1265 Minor