Friday was an "inside day", where the entire range of the day's trading was within the previous day's range. This signifies consolidation, which is not unusual after a big move up.
Gold is now well clear of the 200 DMA and the 20 DMA has turned upwards. Resistance immediately above is at the 50 DMA at 1696 and Thursday's high at 1698.
The major trendline from the October and November swing highs is now at around 1706 - once we can clear this level and close above it, the bulls will be firmly back in charge with sights on 1730 and 1755.
Today's video for subscribers looks at the action over the last couple of trading sessions and our thoughts on the next week's trading.