Gold Technical Analysis: $1,230 is the level to beat for the bulls

• Gold has crossed the trendline falling from, the Oct. 26 and Nov. 7 lows. The bull breakout, however, would be confirmed above the horizontal resistance at $1,230 (Nov. 21 high).

Daily chart

• As can be seen above, the yellow metal closed at $1,223 yesterday, confirming an upside break of the falling trendline resistance. The long upper shadow of yesterday’s candle, however, takes the shine off the bullish breakout, as it likely represents selling pressure near the key resistance at $1,230.
• As a result, a break above that level is needed to put the bulls back into the driver’s seat.
• The 14-day relative strength index (RSI) is reporting bullish conditions above 50.00. Further, Fed’s dovish turn may have put the greenback on the path to deeper losses. So, a break above $1,230 could happen soon.
• The prospects of bull breakout, however, would weaken sharply, if gold prices find acceptance below yesterday’s low of $1,230.

Trend: Cautiously bullish