Gold has found initial support at the $1120.00 level and has posted a corrective move higher over the last two days.
The yellow metal is now approaching the technical downtrend line near $1155.00, which we feel will offer stiff resistance. The 30-day moving average is currently at $1186.00. The RSI has been in oversold territory below the 30.00 mark for over a month, so some price consolidation is expected before extending lower.
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Newcrest Mining is currently 3.5% higher at 17.40. We view this move as corrective and would expect sellers to return at , or around, the 18.60 level.
