Gold Consolidation Underway, Support At $1,132/oz: Mitsubishi

Author: Paul Ploumis
18 Mar 2015 Last updated at 05:14:35 GMT

(Kitco News) - Gold’s downtrend from the Jan. 22 highs remain intact, says Jonathan Butler, precious metals strategist for Mitsubishi.

“[B]ut with gold now oversold on the RSI and MACD measures, a consolidation appears to be underway,” he says.

“Support remains around $1,132, the low seen in November last year.”

For silver, Butler notes that a “surge in COMEX shorts recently raises the prospect of a short covering rally if the Fed press conference is more dovish than expected.”

However, if the central bank remains hawkish, he says silver should resume its downward trend.

Courtesy: Kitco News