Gold Price Analysis: Support at 1170.00/1162.35, resistance at 1180.00/1182.20

New York (Jun 26)  Gold has been in correction mode for a week now and yesterday completed its fifth consecutive bearish candle. This move has also now seen an intraday breach of the near term support at $1172.50 and also a close below $1175. These were two criteria for me that would suggest the sellers are in control for a real go at the $1162.35 support. I agree this is a bearish break however I am mindful that the pace of decline has slowed and on the intraday hourly chart there is a suggestion of a positive divergence on the momentum indicators. Although it is not perfect, the suggestion is that selling momentum could be waning and this could result in more of a consolidation taking over. I said yesterday that the $1180 resistance is the level to watch now as a move through this would re-engage the bulls once more. Prior to that, $1175 is also acting as a near term barrier as the drift continues lower and a dip below $1170 would re-open the recent lows at $1162.35.

Soiuce: FXstreet