GOLD regained control of a broken support last week and made a continuation high move. Also it triggered its short-term trend buy signal last Thursday.
Last week’s trades
The significant element in last week’s price action was the way the futures stayed above the previous week’s high, except for a relatively short and shallow pullback early in the week.
The price action on June 3 (see the left side of the chart) was an explosive move on high volume; normally we would expect some sort of retracement from that kind of move.
But the price held up, and once the resistance established by the previous week’s high was broken, the market moved steadily higher.to Nat’s first sell level.
There were two logical entry points for that trade: when the price moved decisively above the previous high, and when the price broke above Nat’s key line. Traders had the opportunity to capture about $25 to $18 — worth $2,500 to $1,800 per contract — depending on which entry they chose.
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Daily PMO indicator turned up above its signal line, which is very bullish. Price returns to the May opening area; we need a significant breakout from the May high to reach the longer term bullish upside targets. Now the $1300 level is near. A break above it implies that $1400 will be next focus
The $1285-83.50 is a key zone for this week. A fail to move above it will lead $GOLD to retrace around $1245-40 area to search for support.
FOMC day could move GOLD price with a wild range. But $1200 level will become a short-term support line for a while. As long as GOLD price stays above it, bulls will be in the driver’s seat.