Gold markets rallied Monday, after initially pulling back a bit to find some buying.
The $1325 level is just above, and that is an area of resistance due to the psych significant mark. Beyond that, if it breaks above that mark it would not only break that big number, but will also break above the prior uptrend line; both be Very Bullish sign’s.
Should Gold’s price be turned back at that resistance mark it is likely that it will look to $1300 level as the strong support.
Beyond that, we could break down below there and go looking towards the $1275 level below. That is an area that features the 200-Day EMA, and previous support. At this point, it looks as if that could be the floor in the market.
Pay attention to the fear trade, whether or not money is flowing into precious metals to protect trading accounts that are suffering at the hands of depreciating currency.
If that happens then looking to $1350 on the break out. To the Southside, a break below the 200-Day EMA is a longer-term sell signal, which could open the way to $1200, that appears unlikely now.
We are probably in a consolidation mode that we will be seeing short term, perhaps in an attempt to finally build up enough pressure to break North.
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