A series of lower highs on the daily chart:
and $1310 resistance on the hourly:
FinViz
From Barron's Focus on Funds:
The most-discussed catalyst for gold’s rise yesterday — the biggest single-day gain since June 19 — is Russia: Specifically the fresh worries of an invasion of Ukraine. You’ve also got fresh trouble in Syria and utter chaos in Iraq.
But investors who expect all this grimness to benefit their gold positions may be a bit surprised, even disappointed. Certainly that’s the gist from MKM Partners technician Jonathan Krimsky, who writes this morning:
We continue to have a bullish bias for gold, but it has been testing our patience lately. Given the recent geo-political events, the fact that gold cannot breakout has certainly been frustrating. Part of this can be attributed to the strength in the US Dollar (+2% from July lows), but perhaps the price action it is simply telling us it’s not yet ready for the big breakout?Commerzbank’s strategists point to one potential limiting factor, which is weaker emerging markets demand:
In the short term, gold in particular should remain well-supported by the geopolitical risks, though continued weak physical demand is likely to weigh on prices. Following subdued gold demand in China and India, Turkey also reported weak import figures yesterday: in July, gold imports declined to just 1.5 tons, putting them at their lowest level since February. Compare this to the month before, when 24.3 tons of gold were imported.While we’re at it, let’s note that the inability of gold to move appreciably beyond $1,300 or so comes in spite of the number of investors mindful of an entirely different subject — seasonal price patterns....MORE
