Gold surge possible pullback

On our analysis on the 14.06 we indicated that Gold had fallen slightly on the back of relatively strong retail sales and upward revisions that could potentially lessen the chances of US rate cuts. However, last night Gold spiked to multi year highs and we observed a shooting start candlestick after dovish a U.S Federal Reserve opened the door to further rate cuts. We therefore now expect a bit of a pullback towards $1360 before Gold potentially surges above $1400 in particular as the RSI is now above 80.