Gold has reacted well coming near to the target of 1331, and reaching 1330. All longs have been covered, however the important point to note on Gold is that there has been very little downside action since reaching 1330. Yet the short term stochastics have fallen neutral, this is a bullish signal and should give hope to buyers wishing for the market to break higher.
We have the 1338 area next, and this is the 61.8% med term fibonacci. Now this will probe to be a tough cookie to break above, therefore all buyers should really cover longs looking for a drawback. We would expect pullbacks to hold between 1313 and 1311, which was the break point on the topside. Buyers should come back into the market at these lower levels look for a move back towards the 1338 area. Hold longs unless we lose 1305. If we do lose this support we see 1301/1297 as a good re-entry point.
There seems to be no stopping Gold,above 1339 and and trading higher with 1360 as the overall 2 week objective..
