Divergence of the daily RSI points to some near-term consolidation ahead of further gains, per Commerzbank.
Key quotes
“The RSI continues to diverge and ease lower and we suspect that the market may consolidate near-term as this reflects a loss of upside momentum.”
“While above 1661.84, immediate upside pressure should be maintained. Failure here would allow for a slightly deeper retracement to 1634 and potentially 1600.”
“The 1747.55 current April high guards the 1791.16/1803.29 highs from February and October 2012 and November 2011. This area is considered to be the last defence for the 1921.50 September 2011 high.”
“A longer-term positive bias will be preserved while gold trades above the 1451.45/1445.53 November and March lows.”
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