Gold Establishes New Value Area

Gold has rallied from the high 1700's, into the value area between 1795 and 1815. We are seeing a great deal of resistance at 1815, as identified by a series of red triangles on the KRI. If we are unable to test 1815 again, we are almost sure to test 1795 again. The Kovach OBV has flattened out, suggesting momentum in the rally has petered out for now. 1795 would be a good idea for a range trade, but keep in mind that a few weeks ago we saw value in the 1780's, with 1777 as a floor for now.