See important Research Disclaimer.
Gold back to trendline resistance
Gold sold off sharply following the creation of a double top yesterday, yet no sooner had we dropped back into the $1285 region, then we rallied back up to trendline resistance. The $1295 level seems to be regained as a key support level, with price once more rallying into trendline resistance.
Up ahead, the $1300-1307 zone is a crucial region of resistance which if broken could lead to substantial gains. However, for now we are waiting to see if gold can post an hourly close above $1304, which would point towards a likely rally through $1307.
Ultimately, we would need to see a convincing break through $1307 to point towards a continuation of the recent gains. To the downside, watch $1295 as near-term support.