Gold intraday trading analysis for 23 May 2011, we recommend to trade long in Gold above 1507 level for targets as 1513 and 1517. Stop loss must be placed below 1504 level.
Why to trade long on Gold : Gold has been consolidating for may sessions, as this consolidation cannot be ruled out for longer period of time we expect the positive breakout targeting the 1513 zone, also the strong USD can be held responsible for selling pressure in gold. When we look at charts we see that gold will continue its long term trend as the technical indicators are in favor of trade on daily chart. We will be looking for buying opportunity as long as gold remains above the 1475 level. Trend is likely to be bullish for today’s trading session.
Near term trend is now consolidation and medium term trend will still remain bullish.