Gold Price: how far this rebound can go?

New York (Oct 4)  The gold rebound continued yesterday, with a third positive close and a move through further resistance. There are significant uncertainties now over just how far this rebound can go, but once again this morning the market trading higher suggests the bounce is not done yet. In the wake of the ISM Non-Manufacturing disappointment, gold shot higher, but turned back from $1518.50, meaning exactly $60 of recovery in less than three sessions. However, given the market slipped back into the close there are questions that the bulls need to answer today. Momentum has turned higher, but not decisively yet and there needs to be more to suggest this sharp rally is sustainable. That could come with Non-farm Payrolls today. The hourly chart shows the break above $1500/$1502 was important and there is a more positive configuration on momentum. This suggests that if the bulls can continue to support the market above $1500 and then build on the support then this move will be outlook changing.

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