Gold - Bulls need break above hourly 100-MA

27 thg 5, 2016

Gold rose to a high of $1223 in Europe before trimming gains and falling back to $1215 levels in early US session.

• Upward revision of US GDP is helping USD strengthen, although the bullish price RSI divergence on the hourly chart is still intact. Moreover, divergence would be negated only if prices see a hourly closing below $1211.48 levels.
  

• However, bulls need a convincing break above hourly 50-MA, which has acted as a strong resistance on multiple occasions. Take note of the blue circles, which show repeated failure to take out/sustain above hourly 50-MA levels.
  

• Given the bullish price RSI divergence, the likelihood of a convincing break above hourly 50-MA is high.
  

• The outlook is at a risk of hawkish comments from Fed's Yellen.