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Karen Jones, analyst at Commerzbank, points out that gold prices saw only a minor breach of its uptrend and has managed to stabilise well above the 200 day ma at 1260.

Key Quotes

“Provided that the market remain underpinned by the 200 day ma and October high at 1260/1243.55 we will maintain a longer term bullish outlook (favoured). Note that the 55 week ma lies 1259.27 and the 200 week ma lies 1248.03.”

“A close above last weeks high at 1303 should be enough to regenerate upside interest to resistance at 1324.76/1326.51, the January and March highs. Only a close below the 1243.55 October high would call into question our bullish bias by neutralising the chart and suggesting further weakness to 1231.20, the 61.8% retracement and 1200, the 78.6% retracement.”

“Above 1326.51 would allow for a retest of the February high at 1347.11. Directly above here lies the 1357.80 major resistance. This is the 2014-2019 resistance line.”