Relief Rally in Gold

Gold broke down into the value area between 1815 and 1795, but swiftly spiked back to 1826, where we are seeing resistance confirmed by a red triangle on the KRI. The Kovach OBV is still very bearish, but we are starting to look oversold as both Kovach momentum indicators are bearish. We will see if the spike back to 1826 can sustain, or if it is just a relief rally. If momentum sustains then 1836 and 1851 are the next targets. Otherwise, we expect it to stabilize between 1795 and 1815.