Gold attempts to regain ground
Yesterday saw both new intraday higher highs and lower lows established, in a move which clearly added a degree of uncertainty to this recent move higher. Given the major downturn we have seen in gold over recent weeks, it seems more likely the current move is simply a retracement of the sell-off last week. Thus until we see an hourly close above $1224, it seems likely we will turn lower once more.
The 76.4% retracement seems a likely area of resistance for this to happen and thus $1218, alongside yesterday’s high of $1221 seem like import resistance levels to watch. Should we see an hourly close above $1224, then $1232 would be the next target. However, until that happens, a move back down to $1200 is the preferred option.