Gold gradually regaining ground
Gold has been regaining ground after a drop below the 76.4% retracement. The fact that we saw the price convincingly break below that retracement points towards an increased likeliness of a break lower. However, we need to see a move below $1298 to bring about a bearish outlook to the medium-term picture. For the time being, we are seeing a push into the $1316 resistance level, which represents the most notable near-term level.
However, a break above $1334 would be the ultimate signal to show that this pullback is over. The shallow nature of this current move higher suggests that this could be a short-term retracement before we move lower once more. As such, watch out for a potential weakening from the $1316 mark, where a move back above would point towards a bullish short-term picture at least.