Gold Consolidation Underway, Support At $1,132/oz
London (Mar 17) Gold’s downtrend from the Jan. 22 highs remain intact, says Jonathan Butler, precious metals strategist for Mitsubishi. “[B]ut with gold now oversold on the RSI and MACD measures, a consolidation appears to be underway,” he says. “Support remains around $1,132, the low seen in November last year.”
For silver, Butler notes that a “surge in COMEX shorts recently raises the prospect of a short covering rally if the Fed press conference is more dovish than expected.” However, if the central bank remains hawkish, he says silver should resume its downward trend.