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Is gold on its way back up?
Gold appears to be coming back into a bullish phase following a pullback into the 61.8% retracement yesterday. Price is currently forming a bullish wedge pattern, which points towards another move higher. An hourly close above $1239 would be the most important bullish signal, as it would cement both the creation of a higher low and higher high on the shorter-term timeframes.
However, to some extent, it is the $1245 level that needs to be taken out for the uptrend to really start to push on. Until then, a break through $1239 would complete a short-term inverse head and shoulders pattern, providing a renewed bullish outlook, with $1233 utilised as the level to put stops below. Until we break through $1239, there is still a chance we could continue to drift lower, bringing into play the potential for an entry as a retracement of the rally from $1226.
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