Gold bulls expected to return
Gold has been consolidating since yesterday’s peak of $1100, with price trading sideways utilising the $1098 level as support (16 October high).
Gold has clearly completed this long bottoming formation, where the longer term pattern has also been replicated once more in 2016, with the bottom coming at a perfect inside trendline support on 14 January.
Thus we have a bullish outlook with $1098 a likely level which could provide the base for another leg higher. Should that occur, resistance levels of $1110 and $1113 would be the first in question.
Conversely, a closed candle below $1098 would provide evidence of a possible stronger retracement back down to $1089.