XAU/USD UPDATE – 28/7/14

28/7/14 (21.30) Gold markets went back and forth during the course of the day, but has currently stalled around the $1305 level. As always round numbers come into play here with the psychological $1300 level being the one to observe. On a daily chart the 100 DMA is providing useful support, but we need a close above the 20 DMA to indicate the short term trend has changed. The continually declining daily RSI indicates that the direction for gold is unclear.

However there is significant amount of support just below though so a move back above the $1300 level for any significant amount of time should be a clear buying opportunity as the market should continue to go higher to the $1350 region. As far selling is concerned we have no real interest at the moment.