Gold Presses Lower, Relief Rally Soon??

Gold has continued to press lower, but has remained within our expectations. We did break down into the vacuum zone below 1770, heading for 1759, but have found support just above this level, and at the time of this writing, have regained the 1770's. We are seeing support at lower levels confirmed by green triangles on the KRI. The Kovach OBV is still very bearish, but we could be encroaching on oversold territory, which suggests that we may see a relief rally. If so, we will encounter resistance in the 1780's, then 1795. The latter will provide formidable resistance and we believe it to be a max upper bound for now. If things turn south we should see continued support at 1759, but after that there is a cluster of levels to provide further resistance to the selloff in the mid/lower 1700's.

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Gold catches a lift of safe haven interest as stocks collapse. We are currently in the midst of that patch of levels discussed above in the $1780's. We're likely to close the week here. $1795 is the next stop if momentum continues.