Will gold keep rising?
The short answer is because price says so. Gold had a good start to 2017. Rising from a low of about 1125 per ounce to over 1275 in the first two months, it started the year with a bang. But then it got mired in a broad consolidation, bouncing between 1200 and 1270 for the next 7 months. It turned out the last bounce off of 1200 in July was stronger as it broke the consolidation and rose to touch 1360 in September.
But the rise turned out to be too much too fast and it pulled back to the top of the consolidation range at the start of October. But it did not fall back into the range. Instead, it held and then reversed. It was a small bounce, maybe even a dead-cat bounce, barely getting over 1300 before falling back. And that brings us to today. The fall back also held at the 1270 level.
Watch These Levels
It had been consolidating, there, over support for 2 weeks before moving up earlier in the week. Now it has crossed falling trend resistance and is moving higher. It has support for more upside from a RSI steadily rising and through the mid line. The MACD also has crossed up and is rising in support. The next levels to watch are 1310, the October high, and 1360 as possible resistance. And a break under 1260 ends the bias to the upside.