Gold has been well supported and comfortable above $1,280 since January this year.
In 2019, this area as visited 3 times only for 5-6 days at a time before rebounding aggressively.
Things are a bit different now as we have seen the first real attempt to break this level.
It did bounce right back up after a few days, reaching as high as $1,288; right now is back at $1,280.
A break out in either direction should be expected, always taking into consideration the fundamentals surrounding the metal, but a continuing consolidation for a bit longer should not be surprising.
Another attempt below $1,280 should be monitored with $1,270 (area of previous lows) and $1,250 (200-day SMA). If the drop continue and the RSI goes further below 50 then the bears can make a strong case.
On the upside, a reaction of the $1,290-$1,300 levels should be interesting, with the 100-day SMA being the first potential target.
In 2019, this area as visited 3 times only for 5-6 days at a time before rebounding aggressively.
Things are a bit different now as we have seen the first real attempt to break this level.
It did bounce right back up after a few days, reaching as high as $1,288; right now is back at $1,280.
A break out in either direction should be expected, always taking into consideration the fundamentals surrounding the metal, but a continuing consolidation for a bit longer should not be surprising.
Another attempt below $1,280 should be monitored with $1,270 (area of previous lows) and $1,250 (200-day SMA). If the drop continue and the RSI goes further below 50 then the bears can make a strong case.
On the upside, a reaction of the $1,290-$1,300 levels should be interesting, with the 100-day SMA being the first potential target.