Gold technical analysis for today, we recommend to trade long on Gold above 1608 level for targets as 1622 and 1628. A protective stop loss order should be placed just under 1601 level.
Why is gold consolidating:
Gold was consolidating as a new problem from United States has emerged of USD debit. We are looking for some strength in gold due to weak USD, so this alone can be a strong signal to enter the long positions in gold above 1608 level for intraday targets as 1622 and then 1627 levels. Long term traders or swing traders can keep adding long positions on every dip in gold as it will remain bullish in long term. Today a news from Europe says that Moody has downgraded Spain and this can weaken EURO and conversely strengthen USD. So in medium term gold may seen consolidating in 50 points range. We are how ever bullish and keep looking for buying gold as its clear up trend and we will enter positions using slow stochastic on 4 hour chart.