Gold has risen for five consecutive days but there are signs the momentum is waning. Geopolitical uncertainty and the possibility the Fed may not taper in September have lent the bid to gold and several technical levels were topped in the process.
The pattern initially continued today as the June high of $1424 easily gave, tripping buy stops up to $1433. From there, a wave of profit taking hit and knocked gold back to $1421.
Gold daily chart
The key in the near-term is the close. If gold can finish the day above $1424 the momentum may continue for another day or two but if not, a few days of consolidation around $1400 are more likely.
