June gold closed higher on Wednesday as it extends the rally off last week’s low. The high-range close sets the stage for a steady to higher opening when Thursday’s night session begins trading. Stochastics and the RSI are bullish hinting that a short-term low might be in or is near. Closes above the 20-day moving average crossing at 1501.10 are needed to confirm that a short-term low has been posted. If June renews the decline off last October’s high, the 62% retracement level of the 2008-2011 rally crossing at 1242.60 is the next downside target. First resistance is the 10-day moving average crossing at 1424.30. Second resistance is the 20-day moving average crossing at 1501.10. First support is last Tuesday’s low crossing at 1321.50.
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