Gold key to direction today is good short term support at 1272/71. Watch for a possible bounce from here…perhaps to 1279/81. (It is worth keeping a core short position though). If you try a long, stop below 1267. Be ready to sell a break below targeting 1265/64, 1261 & good support at 1258/56. Exit shorts & try longs with stops below 1250.
First resistance at 1281/82 but further gains obviously run in to a selling opportunity in the 1290/95 area. We have further short term trend line resistance at 1301/02 so it is only a clear & sustained break above here that signals a very bullish breakout. A weekly close above here tomorrow night would be required for bullish confirmation before buying in to longs – there is of course always the risk of a spike higher to trigger stops at such a major level before prices collapse. If a sustained breakout is seen however we have the first confirmation that Gold is starting a longer term bull market.
Interested in Gold technicals? Check out the key levels