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Gold showing signs of a resurgence
Gold is breaking higher this morning, following on from the sell-off seen earlier in the week. The difficulty here is that we are at the whim of Mr Kim Jong-Un and should we see another North Korean nuclear test, it would spark a rise in gold. All things remaining equal, this market looks like it could be retracing a part of the $1358-$1322 sell-off before we move lower once more.
However, given the bullish bias caused by the possibility of another test, the bullish short-term picture looks like a good bet on an intraday basis. It seems like we could be retracing towards the $1345-$1350 mark, and given the potential for a positive surprise on top of that, it makes sense to take longs. As such, a short-term upside into $1345 seem attractive, where a break below $1328 would negate that bullish short-term view.
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