Will the gold resurgence reappear?
Gold has been selling off this week, just as the indices start to rally. This inverse relationship shows gold is starting to take on its safe haven status once more. Looking at the hourly chart, there is a clear trendline resistance in play here and this is likely to be crucial for the future outlook for the week.
There is a clear simple moving average (SMA) convergence support, with both the 50 and 200-hour SMA converging at the $1089 December high. All of which seem to have provided support to trade this morning.
Ultimately, the outlook will be determined by a break and closed hourly candle above $1095, which would provide a good indication that further upside is likely. Conversely, for a bearish view to come through, a move back below $1079 would be required.
Resistance levels of note are $1092, $1095, $1098 and $1108. Support levels to watch are at $1089, $1085, $1079 and $1077.