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Gold consolidates at key support
Gold has failed to resolve the question of whether this downtrend is going to stay the course or reverse at a crucial confluence of support. That support zone is formed by utilising a long term ascending trendline (dating back to 2015) and the 76.4% retracement of the March-April leg higher.
So far we have seen the price respect the $1226 resistance level to the upside. As such, for a more bullish outlook to come to fruition, we will need to see the price break $1226 and subsequently $1236. Conversely to the downside, we will be looking for an hourly close below $1214 to point towards a resumption of this recent downtrend.
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