After several days of price hesitation ahead of its psychological level of $1,300 an ounce, gold broke through that mark, signaling a further bullish momentum towards the $1,350 level.
A further strength beyond the $1,350 level will set the stage more strength towards the $1,400 level. Both its weekly and daily studies are bullish and pointing higher.
However, a close on a weekly basis above the $1,300 level will put gold on a solid footing for broader strength. Conversely, on pullbacks, the $1,300 level will be targeted and is expected to reverse roles and provide support.
Another support is located at the 1,265.05 level where a reversal of roles is expected to turn the commodity back up again. Further down, support is seen at the 1,220.00 level.
All in all, with Gold triggering the resumption of its long-term uptrend, with further bull pressure toward the targeted $ 1,350.00 level.
Mohammed Isah is a technical strategist and head of research at FXTechstrategy.com, a technical-research Web site. He has been trading and analyzing the foreign exchange market for the past seven years. He formerly traded stocks before crossing over to the forex market, where he worked for FXInstructor LLC as a technical analyst and head of research before joining FXTechstrategy.com. He has written extensively on the forex market and technical analysis and his articles have been featured in The Technical Analyst Magazine, The Forex Journal Magazine, The International Business Times and FXstreet.com. At FXTechstrategy.com, he writes daily, weekly and long-term technical commentaries on currencies and commodities, which are offered to its clients. He also produces
for his subscribers. He provides full coverage of the forex market with specific focus on G10 currencies as well as the commodities markets, with focus on five key commodities.