Gold rally under question
Gold saw a strong move lower over the last two days of last week, bringing into question the strength we have seen of late. The crucial thing to note here is that last week’s highs are around the top of a multi-year wedge pattern and thus unless a bullish breakout is going to occur it seems likely that the sellers will return once more.
For this bearish view to come into play, we would need to see a close back below $1115 support. Below that, $1113, $1110 and $1108 would be key.
The $1108 level in particular would be crucial, as a close below there would create a double-top formation. However, until we see some sort of bearish shift, this gradual move higher can persist, with $1128 the key resistance level in view.