Gold set to climb
The small dip overnight has already been bought, with the gold price moving back towards $1270. The definitive bounce off $1250 on Friday confirms this as the first major level to watch on the downside, with an initial upside target of $1280.
While intraday indicators are either overbought or close to it, it might be better to wait for another test of the 200-hour simple moving average (SMA) – currently at $1244. As long as this indicator continues to point higher, then the likely course is still upwards for gold.