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Gold rallies into major trendline resistance
Gold received a welcome boost on Friday from a weak payrolls figure, which negated the potential bearish implications of a flat-lining bottom at $1259. The break through the $1274 high meant that the uptrend remains intact. However, we have since seen the price rally into a crucial long-term descending trendline originating in July 2016. That provides us with a crucial hurdle to overcome for the day. Considering the strength of the rally and the importance of this trendline, there is a good chance we could see gold weaken for the short term.
For that bearish short-term view to come into play, we would need to see the price turn lower from here and post an hourly close below $1279. Alternately, a break higher through the trendline would point towards a continuation of the recent uptrend.
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