Technical Outlook – Technical Outlook: In our last Gold Weekly Technical Outlook, we continued to highlight a critical resistance confluence at $1238/1243, “a region defined by the 38.2% retracement of the yearly range, the 100% extension of the advance off the August low, the December swing low and the long 200-week moving average.” Price is testing this zone now and a weekly close above is needed to keep the immediate long-bias viable.
A breach targets subsequent topside resistance objectives along the 75% line (currently ~1250s) backed by the 50% retracement of the yearly range at 1263. Interim weekly support remains at $1213 with broader bullish invalidationsteady at the yearly low-week close at $1184/1124.
Gold Bottom line Support : The broader outlook remains constructive for gold but the immediate advance takes price into a pivotal resistance confluence. Gold Price needs to close above $1243 to keep the rally alive.
A close below would leave the risk for a pullback heading into the close of the month with such a scenario to offer more favorable long-entries closer to $1207/1213.
