Gold today has traded quietly within a $9 range as trading volumes are low and news is scarce.
Yesterday saw the yellow metal briefly drop below the previous low of the recent slide at 1277 to 1275 before the bulls fought back to recover the lost ground, pushing price back up to close at 1284 to form a “hammer” candlestick on the daily chart. This follows the “doji” or “spinning-top” the previous day, which could signify a bottom is in at 1275 and now we should be looking to higher prices again.
The key determining factor in this will be either a close above 1295 or below 1275 – the former will see prices rise back to around 1330 initially, with resistance at 1300 and 1320.
A close below 1275 will see price fall quickly to 1260, 1240 and 1220…then maybe back to 1180 if 1200 gives way.
Our current assessment is that a move north looks more likely – yesterday’s very minor breach of the previous low with a quick recovery gives a good indication that the bulls are building a base here from which an assault back toward 1400 can be attempted.