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While the major pairs such as EURUSD, AUDUSD and NZDUSD continue to move lower GOLD stayed on the top. It recently climbed above the $1290 level to set a new monthly high. Today, it even test the $1300 level, which itself is a major barrier in the near term. Most likely, GOLD might continue to trade higher, but we need to see how it behaves around resistance levels such as $1310-20. So, buyers need to be careful moving ahead. GOLD might correct a bit lower in the near term, which can be considered as a buying opportunity. There is no major release lined up in the US today, so it would be interesting to see price action in GOLD.

please see chart attached ad post image
There is a monster bullish trend line formed on the hourly chart of GOLD, which might continue to act as a buying zone for GOLD buyers. It is currently around the $1300 level and there is a possibility of a move back towards the highlighted trend line. The most important point is that the same trend line is coinciding with the 23.6% fib retracement level of the last leg from the $1254 low to $1302 high. So, a lot of buying interest might emerge if GOLD reaches the mentioned area. The hourly RSI is around the extreme levels, which can act as a catalyst for sellers for the short term.

On the upside, a reaction around the $1310 level is likely if GOLD reaches there. However, the most important one is around $1320.

Overall, one might consider buying dips in GOLD as long as it is trading above the highlighted trend line.
Posted By Simon Ji of IKOFX