There’s a decent zone of support for gold around $1275-$1280 which has fended off any further downside. Although, with the zone consisting of structural lows from January and March, a 38.2% Fibonacci ratio and the 200-day EMA, it was never going to be an easy nut to crack initially.
Bullish momentum has picked up from the lows of its range since printing a series of bullish pinbars. The hourly chart shows a decent trend structure is developing, and it pullback into the averages preceded a breakout from an apparent bullish flag. We’ll assume a continuation of this trend with a break to a new cycle high (above $1306).
Interestingly, if prices break above $1324.55 a double bottom could be confirmed which, if successful projects an approximate target around $1370. For now, we’ll focus on the bullish momentum on lower timeframes within its range.