Gold approaching massive support zone
Gold has sold-off sharply in recent days, as US rate hike expectations rise. However, this has taken us back to a crucial support area, with the July low of $1311, followed by a cluster of levels between $1303 and $1307. These encompass historical swing highs and swing lows spanning recent months and also the peak from January 2015.
With that in mind, we are around a critical region, where the price of gold needs to turn higher, or else it could get ugly. As such, watch out for potential bullish reversal signals on the short-term, with an hourly close above $1316 pointing towards a more extended move higher.