Is the bottom in? Gold could see a bullish correction, bouncing off $1,700 - Moor Analytics
Gold drop from its March highs at $2,000 an ounce did a lot of technical damage and pushed gold into a downtrend; however, according to one technical analyst, the precious metal could be on the verge of establishing a new short-term bull move.
In a recent interview with Kitco News, Michael Moor, founder of Moor Analytics, said that gold's consolidation of around $1,700 an ounce in recent days could indicate the market's bearish momentum has run its course.
He noted that gold has held critical technical exhaustion levels just below $1,700 an ounce.
"With this year's selloff, we have violated every bull trend, so where the market stands now, the bias is still bearish. Still, we could see a bullish correction in the near-term," he said.
Moor added that it is a little too early to determine if a bullish correction has the potential to reserve the current trend. He said that one signal he is looking for is to see if gold prices can get back above $1,800 by mid-August.