Gold retraces following breakout
The underlying strength in gold came out yesterday with the break and close through $1214, which subsequently sparked a rally to $1240.
We are now seeing that move retraced, yet this is likely to be a temporary move, before another move higher. As such, it seems prudent to look for bullish reversals at key support levels, such as $1217 and $1214.
Resistance levels in this case would be $1232, $1240 and $1263. We would need to see a move back below $1200 for out bullish view to be negated.