Gold rallying back towards key resistance
Yesterday saw gold break through a cluster of support levels, with both an ascending and descending trendline converging around the $1240 level. We are seeing a rally back towards the overnight peak of $1238, yet given the weakness we have seen recently, another leg-lower seems more likely than a recovery for now.
As such, a short term bearish view holds unless we see an hourly close above $1240. Look out for $1235 (76.4% retracement) as a possible near term level that could limit the current upside. Support levels of note are $1225 and $1224 and $1212.