Gold on Cusp of Entering Potential Multiweek Corrective Decline, Chart ShowsMarket Talk

Gold is on the cusp of entering a multiweek corrective decline, based on the daily chart, Oanda's Kelvin Wong says in an email. The daily moving average convergence divergence indicator signaled a bearish crossover last Friday after flagging a bearish divergence condition last Thursday, the senior market analyst says. These observations suggest there could be a change of direction in gold's medium-term uptrend toward a possible multiweek corrective decline, he says. A break below intermediate support at $2,936/oz could trigger such a decline to expose subsequent medium-term support area of $2,834/oz-$2,787/oz. Spot gold is 0.6% higher at $2,999.87/oz. (ronnie.harui@wsj.com)