After registering low at 1554, the yellow metal seem to crawl back to upside. And I really mean it; it’s crawling indeed. If you look at the candles, one by one, you’ll notice that there’s no single day where the buyers and sellers really claim their throne.
What we really know for now is that the yellow metal is trying to find its base or technically, a strong support. And historically, the buyers should have found it by now.
From early June 2012 to end of August the same year, gold had been stabilizing itself in the same fashioned way. It had found a support (1556) and resistance (1634) zone inside the blue rectangle box. A breakout from the box was accompanied by a long white candlestick and an upside moves of the MACD.
I’m not surprise if the current price would take the same action. The buyers should find the current low (1554) interesting enough to add to their position. A ceiling of 1620/1625 should provide the resistance; although they have to break the psycho level 1600 and fibo 23.6% first.
The main question now is, can gold break more to the downside? Can they actually break the current base and hit a new low? I would leave my answer to 1) the equity market; namely DJIA and 2) the March FOMC meeting.