August 29, 2013 – Gold (daily chart) has backed off of major resistance around the 1425 area after advancing to breach that level slightly yesterday. This pullback from resistance occurs after a sharp bullish run of the past week has extended the recent two-month recovery from gold’s late-June depths around 1180. Despite the current slight retreat from 1425-area resistance, bullish momentum on the two-month uptrend still remains substantial. With tentative support within this steep uptrend now residing around the 1385 price region, a re-break above 1425 could then target further upside resistance objectives around 1475 and then 1530, a major historical support/resistance level.
James Chen, CMT
Chief Technical Strategist
City Index Group
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