Gold – Holding gains but a few big tests lie above

• Stalling at $1,960
• Key fib levels remain a big test

Gold is also trading marginally higher today and struggling around a notable resistance level, $1,960.

It broke through $1,940 yesterday on the back of the inflation numbers and has now entered retracement territory where a few key levels will be put to the test.

From a technical standpoint, those are the 38.2%, 50%, and 61.8% Fibonacci retracement levels – May highs to June lows – which happen to fall around £$1,960, $1,980, and $2,000, respectively.

Gold Daily

Source – OANDA on Trading View

A break of these may indicate that gold is back in bullish territory, although the price may face some resistance in the interim.

A look at the 4-hour chart supports the more bullish view in gold but there is scope for corrective moves along the way. We’ve seen some consolidation since breaking $1,940 – which also saw the price break above the 200/233-period simple moving average band. Price has been quite responsive to this in the past.

If the price does pull back a little, it will be interesting to see whether it tests $1,940 from above, with a rotation off here viewed to be confirmation of the initial breakout and a bullish signal. Especially with it coinciding with that SMA band.

Gold 4-Hour

Source – OANDA on Trading View

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